Short-term real estate loans can represent opportunity. In New York, in 2021, on the heels of the pandemic, that's all that many borrowers seek.
Over the course of 2020, many property owners had to shelve any commercial real estate projects they had planned. Their customers were staying at home. The capital for property improvements did not exist.
Now, investors are once again looking to help launch real estate projects. The uncertainty of the pandemic has ignited an interest in a specific type of short-term loan. Through February of 2021, property developers have taken out $4 billion in short-term loans called collateralized loan obligations—an increase by almost half when compared to the beginning of 2020.
Preparing for Post-Pandemic Life: Short-Term Loans Allow Steps Forward
Landlords and property owners are now preparing their buildings for an expected influx of post-pandemic patrons. To facilitate these rapidly-necessitated changes, landlords are borrowing now, with short-term loan financing between 1-3 years.
Whether these projects constitute a direct response to the pandemic or not, everyone seems to be interested in preparing for what's next. Property developers seek lenders willing to take a short-term risk on growth; lenders seek to make high-risk, high-reward investments on the real estate needs ushered in by the new normal.
In a season of charged, long-awaited potential, there's one takeaway message for NYC property owners facing tough financial choices as COVID simmers away: Now could be an excellent time to invest. If you're facing foreclosure or considering closing your building, know that lenders are looking to inject development and growth into the post-pandemic property market.
As one expert put it: “If you can get a transitional lender that's willing to take a bit of the risk, stay with you for a two-, three-year period, allow you to kind of come out of Covid, or rebound from Covid, it makes a lot of sense.”
Look Into Short-Term Loans with the Aid of an Experienced NYC Real Estate Lawyer
Need knowledgeable assistance navigating NYC business ownership? Whether you need foreclosure defense or guidance through complicated closing procedures, the Law Offices of Melvin Monachan, PLLC are here to help. Call us at (347) 389-1682 to schedule a consultation.