This premium floor system using thicker sheathing and deeper I-joists drives savings compared to conventional floors with 16 inch-on-center framing.
Private Financing: 'It’s the New Normal'
The entire market of private debt and equity financing is playing a much larger role in the development and homebuilding space than ever before, and with the banks on hiatus, (for the most part) private financing and equity Joint Ventures are likely to the New Normal.
For those homebuilders that believe that the private markets are competing for their project financing, please take note; No one competing for your business! You must now compete with your fellow developers and homebuilders to garner the interest of private financing and equity. You may not be to blame, no one has written a new rule book on the New Normal, there have been few if any seminars presented to get this information out in the open, and frankly the rules are changing so fast, what you may have learned last month just changed!
I have spoken to over 50 private lenders and equity fund managers. Each has their own criteria and hurtle points to meet, prior to being considered or accepted into underwriting. Most groups have one or more specialists that review your file, most files are rejected. Everyone in debt and equity for homebuilders is working in the New Normal, and are looking for a pearl or better yet the diamond. What most don’t and can’t do for you are spending significant time to help you rewrite your loan request or restructure your company in a way that will accepted or appealing to lenders, investors and fund managers. You most likely are in need of Advisory help that you never considered or ever needed before.
We see too often homebuilders who have weathered the storm, paid their bills, honored their warranty obligations, sold a few homes but need a revolver large enough to help get the homebuilding operation back under way, unfortunately their balance sheet is week, their equity is light and the land has too much debt or has depreciated significantly. The result is they can get a loan from anyone and they keep looking and hoping in vain. What this builder may need is something he has never considered such as:
- Work out specialty company (homebuilding and development only)
- Equity JV financial partner
- Advisory Consulting, loan request package
- Advisory Consulting, Options for today’s market
- Banks Partners building out their distressed properties.
- Bankruptcy and start over again
- Quality systems and processes/lean construction
- Alternative marketing solutions/non traditional
Homebuilders and developers all need a plan to recover! Some have it, many do not. The message of today is; you cannot rely on the skills, means and methoud that have worked for you previously. There is a lot to learn and a lot to change don’t get stuck believing that status quo. The New Normal is here.