Frost Bank located in San Antonio forecasts that most of the businesses impacted by Hurricane Harvey will be able to recover rather quickly from the damages caused by massive flooding from the category 4 storm. And because of this, many are eager to see what the affect the hurricane will have on commercial real estate loans in Texas.
Areas hit hard throughout southeastern Texas by Hurricane Harvey have some fear that there would be negative impact on commercial real estate loans in Texas. Especially since the storm brought record-breaking rain and caused damage to most of the area. But, along with Frost Bank, Prosperity Bank in Houston are optimistically forecasting that the most affected businesses will be able to manage a quick recovery. Both banks have projected the loss from Hurricane Harvey to be around an outstanding $53.4 million dollars, but this is estimated to only be about 10 percent of the 2017 consensus of earnings in Texas, as reported by My San Antonio.
Prosperity Bank and Frost Bank are regional lenders offering commercial real estate loans in Texas. They have plenty of research to start analyzing and predicting the damages, but it is still a little too early to tell the full impact that Hurricane Harvey had on the industry in the area. Banks and some lenders are preparing to be more impacted at the beginning due to upfront costs like the loss of overdraft income. They may also choose to waive fees and storm created expenses, which will also reflect a loss in revenue to many banks and lenders.
These factors could actually cause the most negative financial impact from the category 4 storm. Banks and lenders are already seeing a bit of the aftermath from the record-breaking storm, but again, it is still too soon after Hurricane Harvey to just know how their customers have been fully impacted.
It can be hard to evaluate the damage so soon after a storm and to predict an accurate number of those impacted. But many banks and lenders are trying their best to assess the situation and make for the most accurate forecast model based on damages reported, in addition to claims filed and applications for loans.
Those with commercial real estate loans in Texas that have seen damage from Hurricane Harvey are strongly encouraged to work with their banks and lenders to receive support after the storm. Thankfully, the help from these experienced financial institutes will help the recovery process be more manageable for all involved. Some of these banks and lenders are working closely with their customers to help them best they can by offering waived fees and even restructuring plans to make the payments easier.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.