What is Expensive? - Institutional vs. Private Mortgages

Time can be well spent during the Bridge phase setting up the Permanent phase of the project financing to succeed smoothly. During this phase, the more the owner/developer manages to accomplish (for example, lining up tenants if the project is a rental), the wider the array of low interest permanent financing choices that we will be able to bring to the table.

The private lender is (or should be) keenly aware of the risks and pitfalls of a project that they are considering, and must be ready to step into the breach if necessary to complete a project and get it to the point where it can be brought to market or begin to produce cash flow. Consequently the developer/investor may value the advice of the private lender who is often more entrepreneurial and "hands on" than the typical commercial banker.

© 2008. Gregg Winter. All Rights Reserved.
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