Lender · Springfield, MO · Member since 2023 · 652 posts · 315 votes
11mo
I would even add that valuations have been a pretty big hurdle across the board.
Certainly seeing it in some markets more than others, but I think because of the 'buyers' market and prices starting to go down a little bit, some comps and valuations are really struggling and playing a big role in the tougher 'underwriting' (being that some deals just aren't penciling)
Banks are becoming more strict with real estate in general. Too many projects with maturity coming soon and they are issuing extensions to most. Also, they overstretched during the pandemic boom with developments that took too long to get completed. So yes, liquidity I believe is a factor and the fact that rates made it hard to pass the stress tests. Private equity seems to be the best route at the moment but terms need to be optimal.