Third Times The Charm
This is the third and final time I’m going to mention that if you are a small business owner or involved in a start-up business you need to be in contact with your bank or other financial backers. Hopefully, you have been keeping up with the financial problems generated by the problems in the mortgage industry. It’s a liquidity that is severely impacting the residential market. As someone was quoted yesterday in The Milwaukee Journal Sentinel. “It would be a buyer’s market if there were any buyers.”
The problem is that no one knows what the magnitude of the problem is. This has pretty much locked up the liquidity in the residential real estate market in the US. Not an insubstantial amount of money.
Considering lenders like to know that they can get their money back any time they want loans backed by a residence are making them nervous. If you have line of credit backed by a piece of real estate you banker may not want to give you any more money in your line of credit. In fact they may want you to pay down the outstanding balance.
You need to talk with your banker before he or she talks to you.
You say, I did and everything is fine. Last week someone in France said that day that the situation had changed and they were not going to lend anymore money on lines of credit to two major hedge funds. Believe me when I say that these banks and hedge fund managers talked several times a day, and the hedge funds still got caught short.
Enough said.
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