Q about financing larger projects

[randallg99]

for those financing properties >10mm with 30% equity, who are you using? The usual suspects I have known to do it for years are either out of biz or they're using shark rates.

Thanks in advance.

 

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[SteveO]

Are you talking apartment or commercial? Agency lenders such as Fannie, Freddie and Ginnie are still doing loans on apartments. Underwriting has tightened up though.

I don't follow the commercial market too much but, there is not much out there. Insurance money is probably a likely candidate though.

 

[randallg99]

I am looking into an office facility.... originally was considering apartments but I think the value is going to be found in the office commercial end of the market especially when unemployment reaches the double digits and forces banks to shrivel up like george costanza coming out of the ocean. Originally was interested in a large building/campus for sale but it would have been too much for me to handle (raising funds, etc) so I've changed strategies to looking at 5 to 10mm and this where plenty of distress will be found, if not already. I have a couple of appointments next week to view them.

sidenote- was speaking yesterday at Memorial Day with owner of largest privately held home builders along east coast and he said verbatim that all of commercial is: "waiting at the gates of hell and that we haven't seen anything yet" ... he was always holding thoughts close to his vest but I think in his wiser years he is opening up more, which is nice to get his perspective...

 

[randallg99]

smaller banks are taking on 5-10mm loans but of course they want your left arm or first born, along with a 25-35% skin in the game....

 

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[EdmontonShaz]

For the 10,000,000 plus deals, and I've only done two, here in Canada it is mostly done by Pension Funds and Life Companies. As of late, a bunch of pension companies have gotten back into the market place - but they are tough to get a hold of.

I normally end up going through a broker, or to the HSBC.

Shaz