Buying Time In An Ugly Commercial Finance Market
Hurry up and wait. This is the current mantra in the commercial construction finance industry. The banking industry is in chaos and getting financing is a slow process. Banks are terrified of risk and so you can wait month after month for funding.
This delay of course means that your project is also delayed. All kinds of issues can arise because of this, issues that can sink the project before it even starts. To avoid this disaster, you can look to private money for relief even in this market.
The finance market is such a disaster at the moment that no banking source is reliable. When Fannie Mae is going under, you know it is bad. Most developers are now just trying to buy time till things improve. Bridge loans from private money are just the way to do it.
With quick approval times, you will have money in hand within a few days of applying and can get the project moving. At the same time, you can seek out traditional financing for the long term without worrying about approval times. Once you have that loan, you can pay off the bridge loan.
The private money bridge loan is a project saver in a market like we currently have. When banks are holding on to their money with a vice grip, private money lenders are providing solutions that keep your project above water.
Most people view the current financial crisis as closing in on a turn around point. Sadly, they are wrong. The worst is yet to come. 2009 is expected to be as ugly as they come in financing. If you need a commercial construction loan, only private money will provide the solution.
Imagine having the money that you need to start your project right away, wouldn’t that be nice? Well, now this can be a reality thanks to private loans. Banks are great when it comes to getting all the money that you need, but in the meantime don’t put your project on hold.
Keep in mind we are dealing with private money here. No, not the mob. This money is comprised of contributions by wealth individuals. They are free to offer whatever loan terms they like, so shop around because you will get very different offers.
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