What goes around comes around

Lisa Galley's Our Green Journey is the newest addition to my blogroll and a good one at that. I enjoyed reading Lisa's post on her experiences at the Counselors of Real Estate conference in San Francisco. Her post yesterday on extinct loan terms got me to thinking about cycles again. Example: mezzanine lending was an endangered species a couple of years ago, but now you are starting to see mezz debt come back. Just as demand is cyclical, certain types of deal structures are too.

Hopefully we won't see the days of interest only loans and overly generous cash-out refis on residential property that assume continued astronomical appreciation. I don't think they are healthy for that market. I was just talking to a banker friend of mine about some of his clients doing cash out refis in the commercial market, albeit at LTVs that (hopefully) make sense.

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