“If Your Project’s Cash Flow Has Stalled Out, Then A Fast Construction Loan May Be The Answer To Get Things Back On Track”

Construction projects tend to have the most cash flow problems are the very beginning and at the very end of the project. At the beginning, even if you have a construction loan arranged, it can be hard to get the first draw advanced. Bank construction mortgage requirements will be the most rigid leading up to the first draw and unless all the bank’s conditions are met, they will not advance funds which means they are also not invested in the project yet. At the end of a project, the budget may have become overrun leaving a short fall in funds to cover off the remainder of the costs. And even in the middle of the project, an institutional construction loan draw can be cut back subjectively by the lender based on their assessment of the work remaining versus the amount of funds still available to be advanced. Regardless of the reason or timing, if additional capital can’t be located quickly, the project may start to incur delay costs, breech of contract scenarios, or worse. The solution for many of these types of construction financing shortfalls is a fast construction loan. These are equity based loans typically provided by local private lenders that are lending against the current value of the construction project or on another piece of property that may be totally unrelated to the construction real estate. These construction mortgages can also be called construction bridge loans as they are very short term in nature and are typically for a smaller portion of the overall project. That being said, a fast construction loan may also be required to replace the bank building mortgage completely if the draw process has been stalled out for whatever reason. The key to locating and securing fast construction loans is to work with a mortgage broker that focuses on both construction and private mortgage financing in your local area. This will provide you with both the expertise and sources of financing that can get the job done quickly. How Quick? Construction loans for existing projects where all the paper work and approvals are in place can be arranged in a matter of days to a week. If you have a construction project that needs to consider fast construction loans right now, give me a call so I can quickly assess your requirements and provide relevant financing options for your immediate consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh