Jim Collins with First Southern Mortgage, an independent commercial and investment mortgage banking firm, reports indications that life companies will begin lending again in 2009. As he put it, "Allocations will be below record 2007 levels, but at least the spigot is dripping again."
Collins says that the prevailing sentiment is that lenders will target high quality, conservative deals, looking for "good investments and not just to make loans." He marks it as the beginning of the "thaw" with money starting to flow.
Life companies have been hoarding cash in an effort to bolster their balance sheets and stave off acquisition, but that approach does not fit their basic business model. Their fundamental business requires that they invest money, and a big segment of that investment is commercial mortgages. The threat has not passed entirely, but some acquisition stability and the need to return to their basic business model has begun the thaw.
There are many opportunities to purchase investment property in the Chattanooga area. Owning real estate is a great way to invest in the local economy. Contact Benjamin Pitts today for more information.
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