From the June issue: In the easy lending climate of recent
years, it seemed almost anyone, no matter how much money they had in their bank
account, could become a real estate developer. But in the post-boom
world, lenders are hinging much of their decision-making on something
that was previously off-limits: a developer’s personal wealth. Real
estate financial experts say sponsors now must display evidence of
tremendous riches to qualify for a loan, as lenders examine everything
from borrowers’ cars to their vacation homes and their kids’ college
tuitions. As a result, real estate development has transformed from a
great equalizer, an industry offering opportunities for a wide range of
entrepreneurs, to the exclusive province of the rich and famous. [more]