One of the most common phrases I hear when dealing with a construction loan is: “The Future Appraisal.” This is usually used in the context of making sure that the property will have sufficient value for us to get the loan needed to complete the structure. Unfortunately, it’s impossible to appraise something “in the future.” You can only appraise value in the “now” because you only have comparable information “now.” It’s a (more…)
Posts Tagged ‘Commercial Loans’
Construction Loans: the Myth of the “future Appraisal”
Thursday, March 25th, 2010Commercial Real Estate Lives!
Friday, August 14th, 2009
I have just completed an extended vacation that took me through 6 states. Along the way I took some time to survey the status of commercial real estate in both existing and property under construction.
I’m happy to report that contrary to what the “media” has to say, all is NOT doom and gloom. Even in Las Vegas, one of the most overbuilt markets in the country, I found constr (more…)
Construction Financing and Commercial Loans
Friday, June 1st, 2007Commercial construction financing and commercial real estate loans are presenting a number of new challenges for commercial borrowers. As a result, small business owners should anticipate that they are likely to encounter some new but generally avoidable problems when they are seeking working capital funding and commercial mortgages.
There have always been complex problems for business owners to avoid when seeking c (more…)