Commercial Property Loans Are Going Private
09.April, 2010
For more and more commercial property deals, the capital for commercial property loans is coming from private lenders versus institutional lenders.
For institutional or traditional lenders, the risk right now is too high in the economy in general to get even more extended than they already are with commercial mortgages.
For private lenders, the movement is out of the stock markets and into the private mortgage markets because the risk is viewed to be lower and more profitable.
As more and more private money leaves the stock market for the mortgage market, rates in general are going up to feed the required private lender returns.
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