Banks not doing anymore construction loans

[Derek Bell]

I am a developer/builder. I am doing a spec 20k sf warehouse in Nashville. The bank that I have used for many years has stopped doing all construction loans. Told me that their construction bucket is full.  Kind of a bummer since they ordered an appraisal that has already been completed. Now I am stuck without a loan, an appraisal that may not be accepted by another lender, and I am about to get full building permit and finished with grading permit. I am wondering if anyone else is experiencing this problem. 

I love how banks say its all about the relationship, but then leave you when you really need them. 

[John M.]

I can't speak to construction loans but I can speak to financing investment properties in general.  My main banker told me that they are derisking their retail portfolio this past spring and are requiring more money down and are more selective on deals.  Banks can change on a dime their underwriting policies and it's frustrating when you're half way through the process.  I have been through about 8 banks in my investment career and I've learned to keep in touch and have at least two or three in the quiver when you're ready to make that offer.