Pickering construction bridge financing can be required for any type of construction project, ranging from single family residential to larger commercial and industrial projects.
Construction bridge loans are required when a project runs out of funding for whatever reason, or can no longer access financing that has already been arranged.
With respect to the former, a construction project can run over budget due to changes in scope, unexpected costs, poor initial budgeting, bad project management, and so on. With respect to the latter, its not uncommon for there to be delays in the advancement of preapproved funds from a construction loan due to either the lender not processing the draw request fast enough, or the property owner or builder not meeting the lender draw requirements. In either case, if funds cannot be drawn, then there is a short fall in the cash flow that can result in the work coming to a halt.
The solution for both these cases is a Pickering construction bridge financing facility which is basically a mortgage registered behind the existing mortgages on the property and is provided based on the equity in the property at the time the construction bridge financing request was made.
A construction bridge loan is easier to secure and more common near the end of the project when most of the work and construction risk is out of the way, allowing a bridge lender to step in quickly without spending a great deal of time assessing the application. The smaller the construction bridge loan request, the faster it is likely to get into place as well due once again to the lower level of risk exposure on the part of the lender.
Due to the need for a quick turnaround from the time of application to fund advancement, Pickering construction bridge financing is mostly provided via private mortgage lenders that have a focus in construction financing in the area. Private lenders who finance similar projects and no the local market will be more apt to move quickly than will bank or institutional mortgage providers.
Construction bridge financing will likely cost more than the current cost of funds for the project, but when you consider the added costs of the project coming to a stop before completion, the incremental cost of financing is likely going to be quite small.
If you require Pickering construction bridge financing for an existing project, please give me a call so I can quickly assess your situation and provide financing options for your immediate consideration.