How to Get Private Lenders & Lines of Credit to Fund Your Business

Developing sustainable energy sources and reduction of greenhouse gases is a laudable goal that many share with the “green movement”.  Now, whenever trends become popular, marketers jump on the bandwagon to try to profit from it.  The latest addition to this trend is “green loans”.

Some banks (mostly community banks), and some larger institutional lenders are making noises about funding “green” commercial developments. What does this mean, aside from the press it’s designed to generate for the bank.

The answer is –not much.  If you and your project doesn’t qualify with the current restrictive criteria–credit, cash, debt coverage ratio, etc, no amount of green is going to help you get funded.  Now if you’re a A type borrower, going green may get you a marginally reduced interest rate.

Is it worth it?  Well remember, going green will help the environment and may marginally reduce operating costs, but the building cost is definitely going to be higher.  Are the green bank going to loan you more money?  Not one penny more than the underwriter’s LTV dictates.  And will appraisers recognize an increased value in a green development–nope.  Nobody’s changed the appraisal standards to bump the value of green construction. 

So if you’re looking for an edge, build green if it will help you sell or rent your property.  But don’t hold your breath for the banks to come running to help. 

By the way, if you want to know how to fund every deal you do, I’ve created the absolute best and most comprehensive funding manual you will ever see called “Show Me the Money“.  It contains step by step instructions on how to get money from private lenders, high net worth individuals, lines of credit, financial institutions, buyers, sellers, notes, and much, much more.   And, it’s a ridiculously low investment (for now!).  Click here and Get in NOW.

Posted to Commercial Lending, Institutional Lending
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