Funding Loans In Today's Market!

Real Estate lending in today's environment could be considered a high risk activity. The valuations are plumeting and exit strategies are becoming difficult to anticipate. In addition, more and more financial institutions are limiting or completely stopping any type of real estate lending. With less capital available the demand for properties is going down thus bringing the prices further down.

Another factor to consider for the continued miss understanding of the issues is the type of information available. In general, there is a lot of wishfull thinking and miss leading or just bad information in the market place. The press does not help much and maybe creats more difficulties.

It is important to try to understand the problem because this allows for solutions. Appreciating the issues enable us real estate agents, loan offiers, bankers etc.. to help the industry recover. Accepting that there is a system wide problem and working on solutions allows us to stay in business.

Loans are not funding because from the borrowers to the investors, everybody has the wrong expectations. A lot of people do not realise that the money available a year ago is not anymore. More to the point, they know it but act like it does not matter. Everybody lost perspective of what a loan is. A loan is an instrument/ tool to achieve an objective. Defining the objective will allow to secure the best loan for the borrower, it does not matter if it is for a residential property or for a commercial one.

Let me conclude here, if an entity wants to have access to real estate financing today and I think in the future, they will need to uderstand the objective of the financing.