The lender can lend the capital to a financial intermediary against interest.
Each lender lends a small percentage of their total funds to lots of different businesses.
Many initial lenders would lend at a very high rate in a hope they will be included in the loan.
Where a decade ago lenders would readily lend $100 or more a square foot, few are giving as much as $50 today.
"If a lender lends once in a building, it's more likely to lend again."
Development requires borrowing, and lenders won't lend money without terrorism insurance to protect the building that provides security for the loan.
For example: If the appraisal is valued at $1,000,000.00 a lender might lend between $500,000.00 and $650,000.00.
Many commercial lenders will not lend monies to borrowers if the property or personal capital does not exceed the worth of the land.
Our lenders are not lending money at subsidized rates.
In order to 'persuade' lenders to lend, as seen above, fractionally higher rates will be necessary.