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Cascade Bancorp Message Board

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  • investor_dct investor_dct Feb 17, 2009 4:11 PM Flag

    Builder lines of credit

    Years ago most banks would only loan on commercial real estate and a value that was 80% of cash flow. Residential and homes based the repayment on income from other sources.

    If the rent from a commercial project was $1,000 a month the maximum loan payment was $800. Bare land, development loans and speculation were handled by private parties and not regular banks. There used to be many contracts and other seller financing.

    I guess things changed a lot. Not many investments are more risky than bare land with no income.

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