Posted by Johnathon on July 12, 2008 at 20:10:59:
Hi Cork,
I was a commercial banker for 10 years and have been a commercial broker for the past two. 20% is the average, dependant upon your project, location and experience. Banks are scared in general right now, but if you’ve got someone who is familiar with their innner workings to help you sell your story, it is still theoretically possible to get some concessions. Send me an e-mail and we can converse in greater detail.
commercial construction lending - Posted by Cork Horner
Posted by Cork Horner on July 12, 2008 at 12:33:47:
Ray or others up to date on current commercial construction lending, I am in a project that will soon be seeking its vertical funding ranging from 15-50 million in the High Desert of Socal.
Our entitled land purchase is appraised $4.6M and purchase price of debt and equity partners $3M. After we complete our bridge funding and acquisition.
What are the present day parameters of construction lenders in light of the melt downs in the credit markets ?
I recall seeing they require 20% equity or skin? What about credit for developer overhead and fees as part of the vertical funding.
Any recent experiences here by other relating to my topic/questions?
cork horner
san diego