Calling all Lenders Platt Park

We recently did a post about the amazing opportunities to be had for speculative builders in the DU/Platt Park area-
There is an incredible amount of opportunity to be had in Platt Park (to see the actual statistics: Calling all Lendors Platt Park)
And truth be told, we work with quite a few smaller builders who are eager to get back into this market. In fact, we are hearing it every day about how low the interest rates are and the media pushing the idea that we all need to jump back into the real estate market NOW NOW NOW!

Truth of  the matter is that there are many of you out there “trying” to get back into this market, but if you don’t have the cash, you really don’t have much of a chance to jump on these great real estate deals.

Case in point- we have a client who has a proven track record of fix-n-flips and new builds in the Platt Park area. He is ready to build on an additional site- he has $400K in the bank and needs to borrow an additional $300K for the construction project.  We have sent him now to 3 commercial lendors (one locally owned and operated) and their response was “Yes we will lend you the $300K but only if you invest $300K in a savings account in our bank”. WHAT? So, in other words, my client needs to have the cash to fund his own construction project – so, why would he need a commercial loan?

We have run up against the same type of problem with another client looking to fund a much smaller project. 

So we are Calling all Lenders who are interested in working with clients in Platt Park! Help! Do we need to just work with hard money lenders?

Construction projects (and frankly lack there of) have been reported to be an enormous problem in our current economic statistics in terms of unemployment (CNN money blog this weekend)- and yet our very own lenders are not allowing us to pull ourselves out of this economy.