Something that we’ve noticed in the last couple months is the tightening of construction money from lenders. This seems to be hitting the smaller residential projects and the larger commercial projects too.
Now, don’t let it get you down. There is still money out there for construction, you just have to look a little harder when people aren’t interrupting your dinner trying to hand you cash.
The suggestion that comes up from both contractors and owners is that you should look for local banks to lend on your project rather than national banks. If your project is in Colorado, Colorado banks are the place to start because they will have a better feel for your area and they want to lend on projects they can understand. I have also heard that several of our clients have had more luck going directly to a bank rather than going through a broker. Finally, if the construction is residential, talk to your contractor and see if they have a track record with lenders and construction loans. Again, relationships and familiarity can help you.