Borrowing money won't be as easy in
the 1990s as it was in the 1980s. Even
without tough, new rules governing
savings and loans (S&Ls), lenders will
be slower to lend money for real estate
development, especially where risk
seems high.
More than ever, lenders will want
borrowers who are on solid financial
ground, borrowers who can demonstrate
consistent performance. They'll
probably want more equity participation
from the borrower too. Not all
institutions will be willing—or
able—to lend for all purposes. That's
largely the result of the billions of dollars
in bad loans that plagued lenders in
the 1980s. These bad loans led to the
closing or consolidation of hundreds of
S&Ls.
For instance, acquisition and development
money will be harder