Real estate lenders expected to rely heavily on Commercial Appraisers in 2019.January 14, 2019 11:42 am
Commercial lenders are becoming more conservative this year according to Western Investor Magazine. In 2019, lenders will require more details regarding the borrowers’ track record and prospective developments, and it all starts with the land.
Recent increases in land valuations based on a cost-per-buildable basis means commercial lenders are taking a harder look at borrowing developers, their experience and where their portfolio is sitting from a risk/liquidity standpoint.
Borrowers must understand the critical elements when it comes to financing. Planning for success means being prepared and putting together a comprehensive financing proposal that addresses all aspects of the project including accurate land valuation.
Categorized in: Western Investor