Chandler, Arizona Shopping Mall

Many investors and banks are turning down commercial retail loan requests. Although most of the shopping malls in Metro Arizona are still flourishing during the recession, most hard money lenders aren’t making a ton of loans on this property type. Yes, there are plenty of loans out there, but short term loans are more common right now for commercial retail purchases & refinances.

But is retail slowly dying off in general? These days, with so many discount internet sites where many consumer products are sold at deep discounts, you wonder if this is another reason that commercial retail is slowing. These aren’t just auction sites either, but rather sites where product is simply dumped, regardless of its origin.

I think this is one of the billion dollar questions in real estate. Will retail as we know it die off?

Any thoughts on the future of retail in Metro Arizona? Leave your comments below.

Posted by John J. Haring on August 19, 2010

Many people wonder if lending will ever go back to the days of 2005 and 2006 when banks were issuing what some people call “heartbeat loans.” Well, I’ve heard the memory of the market is the shortest of all, and if this is the case in the banking world, who knows what the future will hold. Many skeptics say that the lending environment will never be as loose as it was, while some believe the opposite is true. If you have any comments on this, leave them below.

The good news is that private money lending has grown to meet the new demand for the vast number of purchases of distressed real estate.  In Arizona, there are so many opportunities for real estate investors, but few of them have the cash to finance their own purchases. Going to a potential partner or family member for the cash is certainly out of the question, as many of them have lost money in their own investments.

This is where private money comes in. Hard money or private money, is non-bank financing.  For most private lenders, the borrower’s qualifications are of very little importance. The property is the  only collateral for the loan. For real estate investors who find one good deal after another, private sources of financing are allowing them to take advantage of these once in a lifetime opportunities.

Any comments? Please leave them below.