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Tag Archives: Banking & Finance

COMMERCIAL FINANCE 701 — Appraisals, cap rates & loan dollars

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An appraisal is one of the most significant obstacles to a competent developer’s obtaining a commercial loan.  Once received, the anticipated appraisal chiefly goes unread – except for a few critical numbers.  This article discusses appraisals, cap rates and loan dollars. What is an appraisal? Not surprisingly, the feds have their own definition of “appraisal.”  At 12 CFR 225.62, the ...

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COMMERCIAL FINANCE 701 — Participations: One loan and multiple banks

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H igh dollar projects and banks’ house limits are major drivers of commercial loan participations.  This article addresses why and how banks join together to make a single commercial loan. What is a loan participation? A loan participation is an arrangement among banks in which one bank shares part of its loan with one or more banks.  The arrangement is ...

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COMMERCIAL FINANCE 701 — Loan guaranties: Skin in the game

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M any a furl-browed borrower has questioned a bank’s need for guaranties.  The borrower – excited about his can’t-miss venture – may be slightly offended that the bank even thinks a guaranty is necessary and, contradictorily, hesitant to put his net worth on the line.  Today’s bank – making loans at historically low rates but all too cognizant of several ...

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Jackson issues RFP in 3rd try for convention center hotel developer

The Jackson Redevelopment Authority is taking a third swing at getting a convention center hotel built. With the backing of Jackson Mayor Tony Yarber, the JRA late last month issued a Request for Proposals for a hotel of at least 300 rooms on Pascagoula Street across from the Jackson Convention Complex, an approximately 300,000 square-foot conventions and meetings center which opened ...

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Multi-family, health care construction are backbone of mid-range lending

Ben Williams, real estate law specialist and Watkins & Eager managing member, has been hopping the past year helping Mississippi developers put together projects requiring mid-range loans of $5 million to $50 million. But next month? “I’m not prepared to tell you I’ll be busy,” said Williams, who is in his 28th year practicing real estate law in Jackson. Yes, ...

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