Having a hard time getting a construction loan for your commercial real estate project? It's only going to get tougher.Today's Wall Street Journal (subscription required) reported that a number of regional and community banks may soon report significant losses related to real estate construction loans gone bad.
With the residential construction industry in the toilet and interest reserves running out, more and more banks will be forced to report an increase in construction loans that developers cannot repay.
More writedowns means less capital on the balance sheet.
Less capital means you better know your bank's appetite for any type of loan before you go in with your loan request. Real estate loans or business loans - the bank may have less money or no money to lend.
Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!
Tags : commercial real estate , hard money loans , construction loans
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