As we head into the main construction season, this is going to be a very common call I get from people who do not have enough funds available to complete the project they are currently in the middle of.

There could be a number of reasons for not having the money to complete the work.

• Changes in Scope (like a decision to make the kitchen bigger) over ran the budget.
• Some unexpected expenses were incurred from unforeseen events (like excessive rain delayed the closing in of the structure)
• The bank refuses to advance any more draws against the construction loan already in place (like the third party estimator claims that remaining work costs more than the funds available even if you don’t agree or can prove otherwise)

We could probably add considerably to the list, but it doesn’t really matter.

Your short and you need more money.

Usually when a project gets to this point, there is no time to waste as their are contracts to honor and sub trades to keep engaged to complete the work.

The good news is that there is typically a way to solve the problem through what we call a construction bridge loan.

Your ability to acquire a construction financing bridge loan is going to be relative to the amount of work completed and the amount in value the property has increased.

For instance, if 80% or more of the work is completed, you can typically get 75% to 80% of the completed fair value of the property.

If completion is lower, the amount of money than can  be arranged as a percentage of the property value will be less.

The source for construction bridge loans are basically private mortgage lenders that advance construction loans and have the ability and experience to quickly assess the work completed in order to make a lending decision, hopefully in your favor.

And because this is coming from private lending sources that are used to this type of request, the turnaround time can be as quick as two to five business days.

Of course you understand that fast, short term funding is going to come at a higher cost that a bank loan or mortgage, it still likely going to be cheaper than the costs you’re trying to avoid if your project stalls out.

The construction bridge mortgage would be registered behind the mortgages in place and would be paid out either from the proceeds from resale of the finished project, or through funds provided by the take out mortgage if the property owner is planning to self occupy.

If you’re in the middle of a residential or commercial construction project that requires additional capital in a hurry to get finished, I suggest that you give me a call so we can quickly assess your situation and provide relevant construction bridge financing options for your consideration.

Click Here To Speak Directly To Construction Mortgage Broker Joe Walsh

The post Construction Financing Shortfall first appeared on Ontario Construction Loans And Mortgage Financing.

“A Concord Construction Bridge Loan Can Save Your Project In a Number Of Ways”

Concord construction bridge loans are typically necessary near or close to the end of a construction project where there is not enough capital available to complete the project for whatever reason. While end of project construction bridge loans are most common, it can also happen that  construction bridge financing is needed in the middle or closer to the beginning of work. In these secondary cases, the issue typically isn’t that there’s insufficient capital to complete the work, but that the builder or property owner is not able to comply with the requirements of the senior lender, stopping funds from flowing.

Regardless of why and when a construction bridge loan is required, the insertion of this type of construction financing is meant to get the project back on track from the point of requirement to the end of work. Most construction bridge loans are only undertaken after all other avenues to solve the cash flow problem have been exhausted and as a result can leave little time to get something in place. The closer the project is to completion, the more likely a Concord construction bridge loan can get put into place quickly as most of the construction risk has already been eliminated. The farther away from completion the project is when the bridge is required, the more likely its going to take some time to get incremental funding into place as the lender is going to have to review the project more closely to make sure that whatever funds are being provided will indeed solve whatever cash flow problems exit.

As we mentioned at the outset of this post, a construction bridge loan can save your project in a number of different ways. First, by getting timely access to a source of bridge financing, the project can stay on track and avoid costs that can occur from delays. Second, a stalled out project will only have so much time to figure out its cash flow gap before creditors and lenders start taking action against the property which could end up destroying all the equity invested.

If you require a Concord construction bridge loan for a residential or commercial construction project, give me a call right away so I can quickly go over your situation and provide construction bridge loan financing options for your immediate consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Concord Construction Bridge Loans first appeared on Ontario Construction Loans And Mortgage Financing.

“We Provide Newmarket Construction Bridge Loans For Residential And Commercial Construction Projects”

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.

Click Here To Speak with Construction Mortgage Broker Joe Walsh

The post Newmarket Construction Bridge Loans first appeared on Ontario Construction Loans And Mortgage Financing.

“A Markham Construction Bridge Loan Can Be Arranged in Matter of Days”

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.

Click Here To Speak With Construction Mortgage Broker Joe Walsh.

The post Markham Construction Bridge Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“Here’s How To Locate And Secure Mississauga Construction Bridge Loans For Your Construction Project”

If you have a Mississauga construction project where the approved construction mortgage has fallen apart, or a major draw has been cut back, or the project budget is overrun and requires more money to complete the work, then a Mississauga construction bridge loan is likely your best solution.

By definition, any form of existing construction financing you may have in place is also a bridge loan as its short term in duration and has a defined ending point and exit strategy or strategies.

Construction bridge loans can be even shorter in duration than the original financing with funds only required for a few weeks or months in many cases.

The keys to locating and securing construction bridge loans in Mississauga is to work with a construction mortgage broker who 1) works on the types of construction projects you require financing for and 2) who has existing sources of private mortgage lenders that are able to provide construction bridge loans on existing projects with very short turn around time.

If you call up a local mortgage broker in the Mississauga area, there is no guarantee that they will be able to help you if they don’t have a focus on construction financing. The last thing you want is a broker hunting around for a source of construction bridge loans that they may or may not be able to find, eating up valuable time in the process.

Depending on the level of urgency and the state of completion of the current project, funds can be advanced in as little as 48 hours after time of application making this one of the fastest potential sources of financing available.

If the real estate to be leveraged is a property other than the one under construction, a quick turnaround time is still possible, especially if you’re working with a local source of bridge financing.

With construction bridge loans you are going to have to pay for speed and potentially higher levels of property leverage, but compared to the costs of having the project fall apart or fall behind schedule, this type of bridge mortgage solution can be a true bargain.

If you have a Mississauga based construction bridge loan requirement, give me a call right away so I can quickly assess your requirements and potentially have some private mortgage financing options to discuss in a few hours.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Construction Bridge Loans Mississauga first appeared on Ontario Construction Loans And Mortgage Financing.

“Construction Financing Bridge Loans Can Be A Savior To Getting Your Project Completed”

The most common construction financing bridge loan requirement is for the property fix and flippers that are trying to improve an older home in poor condition and flip it for profit in a short period of time.

You have seen some of the horror stories on the reality tv shows where people are desperately trying to renovate an older home and everything keeps going wrong the further they get into the project. While these may seem like unusual or extra ordinary cases, they are more common then you might think.

The typical story goes something like this. Property is purchased for a bargain price. A renovation plan and budget are put together and used to secure construction mortgage financing. The project doesn’t go according to plan for whatever reason, including the renovator changing their strategy on the fly. The project runs over budget and the owners run out of money before the work can be finished and the property re-marketed for sale.

When the construction mortgage funds run out, the owners will leverage credit cards, lines of credit,and anything else they can get their hands on to finish the project, which still might not be enough, and even if it is, they can end up destroying their credit in the process if it takes a while to sell the property and pay down the outstanding debt.

One way to help stop the bleeding or at least allow the project to get completed in a more orderly and lower stress fashion is to secure a construction bridge loan.

Construction bridge financing is based on the work completed to date and the lenders assessment of the remaining work. In most cases, these loans are under $100,000 and are typically provided by a private lender who is prepared to re-market the property themselves if required.

But in most cases, privates will do these deals because they see the quality of work done to date (which in many cases is the underlying problem in that the work is too good or too extensive compared to what is actually called for) and feel comfortable with the local real estate market.

The trick is to find this type of construction bridge financing as its not commonly provided by most private lenders. And while the cost of bridge financing is not going to be cheap either, it pales in comparison to credit card rates or the loss of profits from lender foreclosure if you can’t find enough money to complete the project.

If you’re trying to locate and secure a construction bridge loan for a residential or commercial property, give me a call and I’ll quickly determine what options may be available to you.

Click Here To Speak With Mortgage Broker Joe Walsh

The post Construction Financing Bridges Required first appeared on Ontario Construction Loans And Mortgage Financing.

“The Ability To Get a Construction Bridge Loan Quickly Can Keep Your Cash Flow on Track and Delays Out of Your Project Time Line”

The classic example of someone needing a construction bridge loan is where the project has incurred additional costs for whatever reason and does not have the ability to complete the work to allow the building to be sold or refinanced into a long term take out mortgage.

Without a quick inflow of cash into the project, delays are likely going to occur that will see the sub trades disappear to other jobs and creditors demanding payment for work already completed.

This is a more common problem with an institutional construction loan in that rarely is the hold back ever paid out at the end of a project. With private mortgages, even if the project has over run to some degree or budgeted too tightly, the hold back portion will be issued 45 days after completion which will provide cash to pay off outstanding debts.

But even with private construction loans, if the project has not even gotten to a completed state, the additional funds that may become available at the end of the project will not be forthcoming unless some incremental capital is injected into the project.

The solution in many cases is to simply secure a construction bridge loan against the property as an additional mortgage. Typically, the smaller the amount of funds requested, the easier it will be to get a bridge loan in place.

Bridge loans are provided by private lenders who can quickly assess the current level of completion of the project and the amount of construction building risk that remains. If there is sufficient equity remaining in the overall project, a higher loan to value than the construction loan can be secured due to the fact that the majority of the work has been signed off already.

Because time is of the essence, these types of mortgages can be put into place in just a few business days in many cases, especially with projects that have all the documentation up to date including post building appraisal and interim draw assessment reports.

Private lenders are going to charge a lender fee for extending the construction bridge loan, but because of the short period of time it will be outstanding, the majority of the lender fee will represent the private’s return as interest will only be earned for a month or so in most cases.

If you have a project that requires a construction bridge loan, please give me a call so I can assess your situation right away and provide construction financing options that we can get into place quickly.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Construction Bridge Loans Are All About Speed first appeared on Ontario Construction Loans And Mortgage Financing.