Bridge Loan for new ConstructionLoan for the bridging of the new building
Bridge credits are a kind of short-term financing that can quickly make a large amount of cash available, e.g. within 7 to 14 workingdays. Bridge credits can be used for new construction to close the financing shortfall until a more sustainable form of financing, such as a mortgages, can be obtained.
Bridge credits are an ever more sought-after development resource when available: Financing conditions between 1 and 36 month. In this way you prevent having to make montly contributions and concentrate your whole financing on the new building itself. Furthermore, some bridge loan providers offer the possibility of taking the funds in installments and only paying interest on the already raised principal.
You should note that the lender will ask you to have an Exit-Plan prior to providing a bridge loan. This is the way you can pay back the loan. When you have experienced developer or a powerful real estate asset base, you may be able to obtain up to 100% of your financing.
Financing for financing developments may include the following: It is unlikely that creditors will be able to obtain up to 100% funding for developing if they are a new builder or if they have never constructed a new building, because they need some level of engineering expertise. A further possibility to obtain extra financing for the construction of a new building is provided by means of financing with money from mezzanines.
You can use a Meczanine loan if you already have financing with a first-class creditor, but need more to complete your work. Most of the Meczanine financiers are willing to contribute up to 20% of the total value of developments. It can be a useful increase in your financial position during your career.
I' ve got my mezzanine loans: Importantly, it is important to remember that not everyone has access to Meczanine credit. Meczanine financiers are reserving their funds only for seasoned developpers. That means that if you don't have a large real estate development or construction pipeline, you won't be able to get a mortgage.
In addition to exploring the available choices and finding the best financing solutions for your new building, a real estate special financing agent can also have recourse to creditors who are not accessible to the general community. You need financing for the construction of a new building?