Peter Pays Paul

Inside commercial hard money lending.

14 Jul

Specialty Lenders Thrive in a Challenging Economy

Category: Commercial Hard Money, Commercial Mortgages, Concord, Contra Costa County, Contra Costa County, Pleasant Hill, Real Estate Finance, Uncategorized, Walnut Creek

Michael Stoler of the New York Sun has written an article about our industry. (HT: The Dirt Lawyer)

Mr. Stoler accurately states that for new or inexperienced developers the sources of capital are few and far between. He writes:

“The answer for a growing number of these borrowers is alternative, or specialty, lenders that provide financing at higher rates and with stricter conditions.”

Still Lending

While the credit crunch has decreased the supply of funds, specialty lenders are still willing to lend on the right deal. Specialty lenders can be hard money lenders or hedge funds.

In order to obtain a loan from these specialty lenders, borrowers should have lots of cash and a solid project grounded in reality, not the past boom market. Mezzanine lenders and joint venture funds help borrowers with limited cash acquire the necessary equity to gain financing.

Borrowers should expect a rate in the double digits and higher fees to pay for the speed that specialty lenders provide.

If you need specialty financing, please feel free to call me at (925) 280-5388.


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Posted Monday, July 14th, 2008 at 3:42 pm
Filed Under Category: Commercial Hard Money, Commercial Mortgages, Concord, Contra Costa County, Contra Costa County, Pleasant Hill, Real Estate Finance, Uncategorized, Walnut Creek
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Responses to “Specialty Lenders Thrive in a Challenging Economy”

Tego Venturi
July 15th, 2008 at 7:42 pm

I know a few guys that are trying to get investment groups together to do hard money loans. Cash is going to be king in this market, and hard money lenders are going to be able to get good returns on their investments. I wish I had more cash and less real estate…

Haythem Dawlett
July 22nd, 2008 at 9:30 am

Wonder if real estate syndication will come back up now. i know it was popular in the 80’s.

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