Spec Loans Are Back!

After months of searching we have finally located not one, but TWO banks willing to loan money on the infill development projects we are currently actively participating in.  We purchase the land for cash and the banks each loan all of the funds to build the project.  Rates are roughly 6-7% with typical construction loan terms.  

This has to be a good sign for the economy heading into 2012.  Austin is on the leading edge of the recovery and what happens here likely signals what will take place to a smaller degree across the country going forward.  

I am anxious to see if our competitors find the same type of financing and what it does to the price dynamics of the markets we are participating in.  Both banks mentioned that they did not want us to alert others they are doing spec loans so it still seems like they are reluctant to lend without a solid introduction.