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Although the Dot Bomb era was not real estate related , confidence in the economy was shaken . Soon thereafter , the September 11th attacks occurred and many borrowers were once again faced with conventional lenders who pulled back on their lending , not matter the asset or the strength of the borrower . kept up with demand , so prices stayed relatively stable . However , whenever there is perceived uncertainty , banks typically pull back and usually to an extreme wherein even the most conservative of loans is not made . The private real estate lender was given the ability to lend very conservatively at the same time as commanding a higher rate of
precipitously , and although real estate declined in value , there were ample opportunities for private real estate lenders . Many private lenders were curtailing their guidelines regarding LTVs , but they were making loans based on the then new , lower values and making a good living . For example , Mark Hanf , president of Pacific Private Money , started his
Again , enter the private real estate lender . During this period , real estate had not severely declined ; maybe because the decline was more specific to the Internet rather than a global real estate credit crunch . People still had jobs and made their mortgage payments for the most part . The supply of housing had not interest than was normally attained in a more stable economy .
The next time the banks curtailed lending occurred during the Great Recession in 2008 . This time , real estate was specifically cited as a major contributor due to the credit bubble and subsequent mortgage meltdown . Real estate prices fell business in 2008 . Normally , one would have thought starting a lending business in 2008 was the wrong time , but Pacific Private Money flourished , as they made loans to borrowers in need at conservative , newer , LTVs , and no client lost money during the continued decline through 2012 due to conservative underwriting .
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