Access to Capital From Financial Institutions
Over the last 5 years, we have seen our economy on a great roller coaster ride from great highs to a new low and a recession. No part of the economy has been immune to the effect. The financial community has seen its share of the troubles from: the collapse of several large investment banks & community banks, the evaporation of the Commercial Mortgage Backed Securities (CMBS) market and increased regulation of the banking system.
The combination of these factors has lead to a shortage of capital to finance new and existing projects. Clifton E. Rodgers, Senior Vice President of Real Estate Roundtable in Washington, D.C. recently stated that borrowing has dropped during 2009 to levels not seen since 1952 and commercial real estate values dropped in the United States from $6.7 trillion in June to $4.7 trillion in November.
With many of the challenges behind us many people have been asking; how do I acquire financing for my project? What are the banks looking for? What are the secrets to acquiring a loan?
The answer to all these questions is very simple: back to the basics and plenty of information.
