Markham construction bridge loans can be a life saver for a construction project that has gone over budget, run into draw advance problems with the senior construction lender, or has run into some unexpected costs that can’t be covered.
In any of these situations, the risk to the builder or property owner is that the project stalls out and incurs even more costs from a delay or even worse if the situation can’t be reconciled in short order? What do you ask could be worse? Well, the builder, contractor, and/or sub trades could move on to other jobs and be very difficult to get back working on your project. The senior construction lender could demand payout of the construction loan and put the project into foreclosure. There are likely other dark clouds that could arrive over the project, but none of them are going to bring any type of good news.
The solution in most cases is a Markham construction bridge loan that can provide the additional funds in a relatively short amount of time.
The funding comes from a private mortgage that will be registered behind whatever other mortgages are already in place and funding the project. The key in getting this type of bridge financing is having available equity in the property in its current state and a strong exit strategy to repay the bridge financing source upon completion.
In most cases, a construction bridge loan is required near the end of the project, so there is very little completion risk to a new lender and the property value has likely increased from the work done to date. For smaller amounts, say under $100,000, its not uncommon to be able to source and fund a construction bridge loan in two to five business days. This can quickly provide just the capital injection the project requires to keep the schedule on track and completed on time.
The best way to find and secure a construction bridge loan is to work with a construction mortgage broker that provides these types of secondary private mortgages in the Markham area.
If you require a Markham construction bridge loan, I suggest that you give me a call so I can quickly assess your situation with you and provide you with relevant construction bridge financing options for your immediate consideration.