"You should expect to put more equity into your deals, you should expect to pay a higher price and you should expect to see recourse again," says Robert Stone, senior vice president of Dallas-based Guaranty Bank. "All real estate deals need a reason, and all real estate deals need to have a story."

Stone's bank is a construction lender, and it expects to do some "hand-holding," though not many work-outs or restructurings, as the recession lengthens.

The downturn in the economy is a fact of life that must be accepted by those in the real estate business, says GE Capital managing director Frank Marro. "Sellers were in denial that we were in a downturn," says Marro, admitting his firm was among them. "Over the next 12 months, people have to admit we're in an economic downturn. But we're excited about that."