Newmarket construction bridge loans are typically required when an existing construction project is unable to be completed due to a lack of available funding. This is typically caused by a change in project scope that increased the overall budget, some budget overrun that was not anticipated, or a problem getting all the approved funds advanced in a timely fashion from the senior lender in place to provide construction financing.
Regardless of the reason, a funding short fall can have costly and potentially disastrous consequences to a construction project. And while the amount of money required may not even be that large relative to the overall project, it tends to need to put into place right away as all other funding options readily available to the borrower or builder have been exhausted or not forthcoming in the time required to pay the bills necessary to keep the project on track.
The source of construction bridge loans are typically private mortgage lenders that also provide senior, or primary construction financing mortgages. The private lenders being individuals or small groups of collaborating individuals can react quickly to these types of requests and provide funding in a matter of days if all the information required is in order. Speed is typically based on local market knowledge and close proximity to the project so that a site inspection can be completed quickly to assess where the project’s at and how much the work completed to date has added to the value.
The challenging part to builders and property owners is that it can be difficult to not only find private lenders that focus on construction, but also those that do construction bridge loans and are prepared to move with the speed required. Speed also comes with a cost, but compared to the additional costs associated with a stalled project, they can be small in comparison.
The key to getting a Newmarket construction bridge loan in place is to work with an experienced area construction mortgage broker that has access to the right type of private lender and can get the financing in place quickly, coordinating the required actions from the borrower, lender, lawyers, etc.
If you require a Newmarket construction bridge loan, please give me a call so I can quickly assess your requirements and provide construction bridge financing options for your immediate consideration.