The Real Deal Miami

Financing of last resort

As financing becomes tougher to find, developers are turning to condo inventory loans

November 03, 2016 08:45AM
By Mike Seemuth

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Property Markets Group received a condo inventory loan secured by unsold units at Echo Aventura.

Property Markets Group received a condo inventory loan secured by unsold units at Echo Aventura.

From the October issueFacing an uncertain sellout period, some condominium developers will borrow against their inventory of unsold units. Condo inventory loans are typically high-interest-rate debt from nonbank creditors and may have unappealing terms, such as giving lenders the recourse to pursue the borrower if the inventory doesn’t fully cover the debt. [more]

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