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It’s an exciting time for the Private Commercial Lending industry. 2012 trends are showing growth for commercial investments and many regional and local banks have started lending again for commercial projects. The demand for private money is still very high as the banks and mortgage companies are still avoiding construction and land development. Also the recent years’ lack of funding for notes coming due and distressed properties has left the door open for Hard Money Lenders and Equity Lenders.
Investment volume for major properties is expected to grow by 50% to upwards of $300B in 2012. CRE has become a very attractive asset class. Equity capital will become more abundant and motivated in the coming 12 months as banks loosen lending standards and demand increases.
According to the Federal Reserve, the driving factors include:
In April 2012 The Federal Reserve surveyed Senior Loan Officers of 81 banks in the US to address changes in supply of and demand for bank loans to businesses and households over the past three months.
We are particularly interested in the results regarding commercial real estate lending. The survey results indicate that a modest net fraction of domestic banks reported easing their standards on CRE loans and demand for CRE loans strengthened, on net, over the past three months. This is likely due to the declined supply in the past 12 months.
Twenty three of the respondents were US branches of foreign banks. These respondents indicated that their standards on CRE loans were about unchanged. The foreign respondents reported that demand for CRE loans had changed little over that period.
One important note is that over the past 24 months, lending standards have increased significantly and most US banks have dropped CRE lending programs for land development and construction.
So the banks are holding steady. The opportunity for Private Lenders and Private Mortgage companies will continue to be strong through 2012 and likely for several years to come.
TOP 10 Funding currently represents over 100 private lenders and we are constantly vetting new sources. We have access to Billions of dollars to lend for commercial projects, such as shopping centers, multifamily, assisted living, and office building purchases and refinance, new developments and commercial construction loans in most cities in the US.
We have great relationships with DIRECT private commercial lenders.
There are no up-front broker fees and the application process is simple and fast. An executive summary and a short intake form will get you an answer in a few days.
Phone: (808) 375-4845
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