My New Blog

Acquisition and Development Loans are Back!

That’s right, large loans for developers to build out resorts, hotels, water parks, even RESIDENTIAL SUBDIVISIONS are getting done again!

I know, the banks are frozen up right now and the Wall Street firms are all under investigation and living in panic mode right now. And I don’t think that will change for some time. And I know the media is telling you that commercial lending is going to drop this year and we are all going to fall off a cliff. I know. However, the big hedge fund and private money guys used most of last year to build up their cash reserves and they have begun to deploy it! I cannot tell you definitely why, but deals I could not get done last year are getting multiple bids on them now. Over the next 30 days, I will close almost $30 Million in development deals. Like a self-storage facility in Los Angels, CA. $14 Million or a $8 Million mixed use condo development in Costa Mesa, CA. It is incredible.

Maybe the big money, behind the Wall Street firms realize that all the Fed bail-outs are going to lead to inflation (that is the only result of printing so much money we don’t have). In inflationary times, real estate does well. Maybe they just need to deploy the money to get it moving. I don’t know. What I do know is that the money is moving and big projects are closing and they won’t have all that money forever. So what does this mean to mortgage brokers and how can you tap this?

Let every developer you know in on your “secret”, that you have a source for money to fund their development. They won’t believe you, but it is true. The biggest obstacle I have to overcome with these guys is they don’t believe anyone is lending. Now here is the good news, MOST OF MY DEALS SO FAR ARE GETTING DONE WITH NO DUE DILIGENCE. This is not some bait and switch deal where a company charges large up front due diligence’s – this is real money lending to real projects. The projects have to be strong, and the developers need experience and they need to have some skin in the game but if the project is strong, we can get it done. If it is residential in nature they need pre-sales, won’t get done without it but there are many projects out there that are pre-sold and they still have been unable to get money. Now they can. Give me a call and together let's see if we can get the economy moving.