Local banks are a little on edge because it is still unclear just how much work is needed to build the area back up after being hit hard by the category 4 hurricane. As of now, it is estimated that tens of millions of properties backed by commercial mortgages in Texas could be at risk and face a long road of recovery.
The Small Business Association has already received a good number of disaster loan requests, leading many to think that more are on their way and that the industry of commercial mortgages in Texas could have been heavily impacted. Not only do businesses have to worry about repairing the property damage caused by Hurricane Harvey, they also are dealing with the loss of income after having to close for so many days during the storm and now during the recovery efforts.
Unfortunately, the area had already been facing issues because Hurricane Harvey tore through southeastern Texas. The state saw a very high vacancy rate at the end of the 2nd quarter, the worst vacancy rate percentage the state had seen in over 20 years. Because of these struggles before the storm, it could take the area even longer to recover.
The long-term impact of the storm and struggles before Hurricane Harvey could take a lot of time and effort to rebuild. With the flood damage and missing income for a good amount of time, many are in fear of having issues with making a profit. These need for commercial mortgages in Texas could increase due to those needing extra help to get back on their feet.
The aftermath of Hurricane Harvey may still remain unclear, but some are hopeful that the banking industry will not suffer too much, since they were already seeing issues. The storm lasted for several days in some areas and broke plenty of records. Lenders are fearing late payments will be more common and that this trend will only continue as the area rebuilds from a bad 2nd financial quarter and now the damages caused by Hurricane Harvey.
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.