| Do you remember that song from the 1960's | | | | Borrowers with good liquidity (10% or more of |
| that went something like: "Where have all the | | | | the loan request),o Good credit (minimum 680 |
| flowers gone, long time passing?" Oh ... you don't? | | | | credit score), ando Good quality properties (quality |
| Hmm, maybe I really AM old! Well, I would update | | | | tenants with reasonable lease rates), that have |
| that song for the current decade to something | | | | minimum two years of stabilized operating history. |
| like this: "Where have all the lenders gone, no | | | | Lenders and Loan Programs that are active:o |
| loans funding!" | | | | Government Agency guaranteed or sponsored |
| My walk down memory lane notwithstanding, I | | | | transactions, including: SBA 7(a) and 504, HUD |
| am getting a LOT of calls from people telling me | | | | construction loans for multifamily projects, |
| that they can't find commercial financing | | | | Community Reinvestment Act loans, USDA |
| ANYWHERE. Even our correspondents are making | | | | Business and Industry loans, and to a lesser |
| it harder to get projects financed, with a notable | | | | extent, Fannie Mae and Freddie Mac multifamily |
| exception. Our Construction Project Rescue | | | | loans.o Life Insurance Companies looking for Class |
| Financing is going like gangbusters ... for the very | | | | "A" commercial properties that would have gone |
| reason that everyone is calling: No one else is | | | | to a conduit lender. $3MM to $50MM loan amounts, |
| financing! | | | | top quality projects, good borrowers and strong |
| Our leaders in Washington have not yet realized | | | | tenants describe the kind of projects they like.o |
| that you cannot "beat" the market. Or in this | | | | Private Funds taking the place of individual private |
| case, "beat it into submission." It is too big to be | | | | money. They are buying notes from banks and |
| effectively controlled, as the former Soviet Union | | | | other troubled institutions. |
| discovered. The question remains whether we will | | | | Other than those areas, it is going to be pretty |
| be able to afford the education our Congress and | | | | quiet out there for a while. There is very little |
| President are now getting. | | | | trust among financial institutions and borrowers |
| That aside, just WHERE can you get financing for | | | | right now and the contracting economy make |
| projects right now? Here is what I see in the | | | | new projects harder to justify given what can be |
| market and please use these thoughts as a guide | | | | purchased in distressed situations. However, |
| as you contemplate placing your financing | | | | positioning yourself to take advantage of these |
| requests: | | | | niches could lead to, dare I say it, personal riches! |
| Projects that will be considered seriously:o | | | | |