Real Estate Forum
"I think there's a tremendous risk," said PPM Finance Inc. executive vice president David M. Zachar, admitting his own company is writing more interest-only loans that he would prefer. "There could be some serious stress in the marketplace."
Zachar was among panelists discussing debt and equity markets, which included some competitors who are providing more leverage than Zachar's 75%. For example, GE Commercial Finance and Bank of America are providing loans up to 95% loan-to-value, usually involving a mezzanine lender partner. "Clients want one-stop shopping," said GE Commercial Finance managing director Debbie Riley.
"I don't think 90% to 95% financing is for everybody," added Bank of America senior vice president Patrick T. Burns. "I think you have to pick your spots."
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