Multi Unit Condominium Construction Financing
“Multi Unit Condominium Construction Financing For Condo Build And Inventory”
Multi unit condominium construction financing is a available from our institutional, sub prime, and private mortgage lending sources.
For condo build financing, the keys to getting funds in place are going to include but not be limited to: 1) the market feasibility of the project in terms of short term resale potential, 2) the amount of equity investment the owners of the project are investing in the deal, 3) the track record of the owners, builders, and/or developers completing similar projects on time and on budget; the budget of the project and the validation of its accuracy from third parties; and the number of condo units that have been presold prior to construction starting.
With all potential condo construction financing requests, there are potentially three different types of financing options that are going to be available to them, ranging from bank or main line institutional lender, the sub prime quasi institutional lender, and the private money lender.
The goal for any project is to match the borrowers up with a lending source that is the most relevant for the projects profile and can provide the capital required for the cost and terms that a borrower is prepared to accept.
For projects that are completed and have received condo status, we can also arrange condo inventory loans for our customers as required.
A condo inventory loan is typically required at times for a couple of different reasons.
The most common reason is that at the end of the project, there are still operating costs to get covered off on a monthly basis before sales from condo units are received, requiring an incremental source of money to aid the cash flow. With a condo inventory loan, the incremental fair market value of the project is being levered to provide the additional capital needed to make the cash flow work in the short term.
Another reason for a condo inventory loan is refinance more expensive construction financing once the risk of construction has been removed.
The last most common reason for a condo construction inventory loan is when the builder or developer requires an equity take out for a new project they are trying to get going and need an inventory or bridge loan to draw on the equity before the proceeds from condo sales are received.
Regardless of the condo building construction requirements or the condo inventory requirements, are goal to match up our clients with the most relevant sources of multi unit condominium construction financing as quickly as possible.
If you are looking for multi unit condominium construction financing for a project you are planning or are in the middle of, I suggest that you give me a call so we can quickly go over your requirements and provide different financing options for your consideration.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel