In a Wall Street Journal article from a couple of weeks ago by Kris Hudson, it is indicated that construction loans posted the largest gain in the second quarter of 2014 since its recovery began about a year ago. According to Hudson, outstanding construction loans for both residential and commercial projects increased to $223.2 billion in the 2nd quarter, up 4% from the first.
The overall lending environment, not only for construction loans but also for individual investor loans and even foreign investor loans, is getting more open and the willingness on the part of banks to lend is increasing.
As for the construction loans, what it means for us as individual Single Family Home investors is that our new-build markets are expanding and will continue to do so.
We are already buying brand-new builder-built homes in the Oklahoma City metro area. Local lenders are extending loans to FOREIGN buyers (!) as well as to American investors with up to 15 outstanding home loans (5 more than the FNMA limit).
Not only will we discuss this at our 1-Day real Estate Expo this Saturday (near SFO – details at www.icgre.com/events), but due to the massive changes in the lending landscape, we will have a special session just for a lenders panel to discuss residential, commercial, hard-money and foreigner loans.
Anyone citing this blog post can attend for free with up to two free guests – just email us at firstname.lastname@example.org and show up for an amazing day of information, learning and networking.