Financing of last resort
As financing becomes tougher to find, developers are turning to condo inventory loans
November 03, 2016 08:45AM
Property Markets Group received a condo inventory loan secured by unsold units at Echo Aventura.
From the October issue: Facing 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]