Three Times is a Trend? Developers Get Poised for An Economic Recovery
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In just the past two weeks or so, I’ve come across the same idea three times: a response to the current economic uncertainty. In every case, developers are seizing opportunities to lay the groundwork so they can ride the inevitable recovery. It is beginning to look like a trend.
Expectancy is the order of the day.
The first time I encountered this concept was in a conversation with a long-time client. His deal – a solid multifamily project to be built in the mid-Atlantic – is on the bubble. Rising rates have reduced the available leverage while costs have come down on only a few line items. The expected returns have suffered as a result. He has kept the deal moving forward, counting on rates moderating and costs coming down more broadly. The project will do well if and when he can get it out of the ground.
Hit the ground running.
The second time this idea came up was with a new client. We’ve been working through scenarios on a project to be built in the Northeast, a planned long-term hold. He’s seen just enough cycles to know that what goes down must eventually come up. That deal will move forward with local approvals, design, and financing because the developer wants to be ready when the economy improves.
Fill that pipeline.
And then there was a recent article in Bisnow, an account of a roundtable with Washington, DC developers and their approach to what may be a coming recession. Like our new client, these folks have seen a cycle or two (or three). They are looking to acquire assets – land and existing product – as those markets cool. The goal is to be ready – and even under construction – when markets eventually turn up.
They say that by the time you read it in the papers, it’s old news. Maybe it is a trend?
Whether markets are down or up, you can rely on AGM.
As a family-owned FHA lender and GNMA seller/servicer with over 30 years of experience, we know the process inside and out. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. We've closed more than $9 billion in FHA-insured multifamily loans nationwide. And we’re proud to say that more than 60% of our borrowers are repeat clients. Count on our experienced team to guide you through the FHA financing process and help you get the deal done.
It's the ideal time to prepare for the inevitable economic upturn. AGM will partner with you to get an attractive multifamily loan that you can count on. Please contact our helpful team today.
About AGM Financial
Founded in 1990, AGM is a leading FHA lender and GNMA seller/servicer. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. Family-owned with over 30 years of experience, the firm has closed over $9 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.
