For those owners that can bankroll their own development projects, congratulations. They’re at the top of the financial food chain. If they have enough cash flow and collateral to borrow money from banks at current low interest rates, they’re what bankers call “bankable,” and they’re in the pink. They can borrow at or near today’s historic low interest rates.
“There is plenty of money around,” said Sid Spiro, founder and president of Regent Bank in Davie, Fla. “But bankers are returning to traditional lending criteria. Basically, you need cash flow and character.”
There are three tiers of financing that marina developer’s access to fund a project: commercial paper, traditional banking and alternative lending or “bridge” loans. And there’s a new wrinkle: financing offered by the marina construction companies.
MAGAZINE: Marina Dock Age
ISSUE: July/August 2012
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