Thread: Alternative to Bank Loans

I have been assisting some local banks on some work out situations. As bad as itis, there are a lot of performing loans out in the market right now, that are rated for obvious reasons (the market turned and the development opportunity changed). Obviously, banks that are 65% LTV on these development projects that have to be put on the back burner (some for a very long time) are probably not in good shape.

On the other hand, there are deals out there out there that have very low LTV's (less than 30%) in which the borrow continues to pay. Because of the poor market, the borrow is going to have to sit tight for a while and wait it out. In all likelihood, the borrow will eventually get liquid and the bank will not get hurt. BUT, when we are in these environments, the banks try to push everything out the door that is not going as planned. the regulators and internal bank credit quality departments force the issue.

It seems to me that there should be investors out there somewhere that would be willing to take these very low LTV properties and earn a healthy return. I have a friend that is starting a private fund that could perhaps be a partial solution, but does anyone know of these types of debt funds/investors or funds that might be willing to take the banks and/or investors out of their positions?

Truth be know, there are increasingly good development deals out there that just can not get funded. These are potential opportunities for these funds as well.

I suppose with the recent situation with ML and Lehman, these types of deals are going to be more difficult to put together (institutional lenders are hiding), but there has to sources out there somewhere.

I've heard this instant cash loaning online. For some reason loaning in this kind gives loaner easy access on cash instantly.

for some who needs instant cash then maybe they can try to have it online.