Bank Financing Stays Restricted

The National Association of Home Builders
published
an article about the health of bank financing/builder relationships. It
cites the start of the lending freeze as 2006, and it isn’t projected
to thaw in the near feature. NAHB encourages builders to look at other
methods for financing as the economy improves.

In the article, Marty
Mitchell, vice CEO and vice president of land and business development,
Mitchell & Best Homes,
Washington, D.C., “predicted that conditions for [acquisition,
development and
construction] borrowers will remain difficult for at least the next two
years, may not ease for at least five years and may ‘not return to what
was considered normal over the past 20 years’.”

D. Rand Roan, principal and founding
member for Apogee
Partners
claimed private equity may be the best avenue for builders to find
financing.

“There is more and more interest on the investor
side,” Roan is quoted in the article.
“It’s just a matter of putting the reports and
analysis together and getting them to the right people.”