Are you concerned about financing or refinancing right now?

[Kevin Meehan]

Not long ago in the distant past, it was almost impossible for investors to obtain financing. Many real estate investors had their loans called (called means a lender required immediate repayment), even if the borrower never missed a payment. Many other loans that were not called, were simply put on a watch list. The lack of new loan options led to so many foreclosure and deed-in-lieu situations.

Fast forward to today. According to a lender poll we just conducted, in the past two weeks about 50% have stopped taking new applications. Another 25% have curtailed lending. 10% have ceased operations indefinitely. The rest is optimistic and are still lending. While I hope this is just a blip on the radar screen, It certainly is starting to look like history will repeat itself.

Our lenders that are still making and closing loans have reduced maximum LTC and after repair LTVs. Rates are rising (due to related forces). Long term lending is in a state of instability. Lenders are genuinely concerned that rental payments will soon stop or that construction projects will not get finished on time.

Since I have been a national mortgage broker for over 25 years, I am curious to find out from more investors and builders:

If you applied for a loan in the past 30 days, have you experienced any delays or had the door suddenly closed?

For everyone, are you concerned at all about being able to obtain new loans or refinance an existing deal in the next 3-6 months?

If you were in the business back in 2008-2009, are you very, slightly, or not at all concerned about what you are reading or seeing about the financial markets?

Share your thoughts. It will be interesting to know what is happening in our industry in real time.