Golf course financing: Where is the money?

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Textron Financial Corp.’s recent decision to bail out of the golf lending business will reverberate through the industry for some time to come. Even though Textron in recent years had reduced its lending activity in golf (as had other national lenders such as Capmark and GE Real Estate), the move is expected to impact both golf course sales and refinancing. 
 
Experts now predict that the only way deals get done will be if the seller is willing to carry at least a portion of the note. You may see an occasional local banker making funds available for a buyer, but that will be the exception, not the rule. And buyers now will have to put up additional equity up front, brokers say. 
 
What impact do you think Textron’s decision will have on the golf finance industry? Will there be fewer course sales? Will difficulties in refinancing mean more bankruptcy filings or distressed sales? Could a new wave of buyers emerge? What will happen to golf course prices, given the uncertainty of the national (and international) economy? Is a golf course still a viable investment under any circumstances in this economic climate?  

Comments

I think GECC and First National are still doing deals. We closed our loan with First National so I assume they are still doing deals. Textron sorry to see them go cause we like EZ Go but will now use Club cart with a lease

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