As I’ve written many times, its not uncommon for a construction project to require three or more separate construction financing or construction loan events during the lifetime of a project.

Knowing that going in can allow you to properly set up and arrange and administer the construction financing for each phase of the project.

Too often, the builder, especially for one time or first time build situations, tends to just put one foot in front of the other and only looks after the immediate need without any real consideration of how what gets arranged today can impact the financing that is going to be required down the line.

The key to construction financing is to have a phase of work completed at a time where the money invested into the project is sufficient in scope and amount to significantly increase the market value of the overall real estate, which then provides the basis for additional funding to be secured for the next stage.

In order to accomplish proper construction financing, the construction loan amount and draw schedule for each phase of work has to match up with with the projected market value. If there isn’t some type of reconciliation to funding and work to be completed and ending market value, then the project can become under funded and stuck looking for additional equity capital from somewhere.

One of the ways to avoid a poor construction financing plan in the first place is to start and stay working with the same construction financing broker throughout the process. This continuity in the overall process can pay big dividends during the life of the project. Too much fragmentation among different brokers and lenders can lead to considerable cash flow management problems that should be avoided at all reasonable costs. A experienced construction mortgage broker is going to help you focus in both on the big picture as well as moving the project through some of the administrative things that can hang it up in the draw management process.

If you’re in the middle of a construction project or planning construction financing for your next build, I suggest that you give me a call so we can discuss your requirements and outline a plan that will provide complete and timely funding.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Construction Financing – Start With The End In Mind first appeared on Ontario Construction Loans And Mortgage Financing.

“Now’s The Time To Start Your Construction Financing Planning For 2011 Projects”

If you’re going to be needing construction financing in 2011 for a construction or development project, its never too early to start the process of getting your construction loan in place.

Even if the projected start time may be several months away, I would still recommend that you build action items into your work planning process to start the ball rolling towards your efforts for locating and securing a construction mortgage. Most builder, property owners, and developers tend to leave the financing aspect of the project towards the end, assuming that funding will be readily available to them at the rates and terms they require. And while this may hold true most of the time, there are many instances when it doesn’t, creating unnecessary delays and added costs to your project.

Each year is also always somewhat different as lenders review their portfolios and lending programs and make adjustments that will strengthen their own businesses. When these changes get implemented, even experienced builders and developers can be caught off guard, especially if they don’t leave very much time for the process to be completed.

For new builders, the learning curve can be a bit steep so the sooner you get started, the more likely you’re not going to miss any key elements to the planning process that will cost you grief or money later on.

At the other end of the spectrum are the people who do start early and try to do everything themselves, spending considerable time trying to digest all the information available on the subject both on the web and in general print. Even though this time investment is an important step, it doesn’t replace the experience you can draw from by using a construction mortgage broker to help navigate the construction financing landscape as it pertains to the project you’re in the middle of or planning ahead for.

Part of good construction project management is to surround yourself with a good team of experts that you can draw upon for different aspects of the work. This holds true for the construction financing aspects of the project as well as there can be many nuances to any given construction mortgage that will not always be evident too the borrower regardless of how much research they do.

If you’re going to have a construction financing need in 2011, I suggest that you give me a call so we can discuss your requirements together and go over different approaches for your consideration as well as any issues that could impact the construction mortgage process so you can proactively deal with them before they have a negative impact on your project.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Planning Construction Financing For 2011 first appeared on Ontario Construction Loans And Mortgage Financing.