Spec Real Estate Lending Returns With Obstacles
Adam Weissburg was quoted in March 16, 2012 article about how so-called “spec financings” – loans based on the projected details of a project on paper – are slowly making a comeback although with much more conservative terms than during the height of the real estate boom.
According to Weissburg, whose practice focuses on secured real estate transactions, lenders and developers are anticipating an uptick in spec financings as the economy recovers. Weissburg said “there’s an overall cautiousness permeating everything that banks do now,” but noted “I certainly think the lending climate is such that lenders are being generally a bit more expansive in the way they’re approaching deals. “The difference in what was once negativity to a more positive outlook is not insignificant,” he added. “It’s a sea change in the way people are thinking.”