There are few things more costly to a construction loan than time. Carrying costs, especially interest, can eat into the profit margin of a project. Construction loans are typically shorter term in nature as well, which means you can literally run out of time if the term matures while costs increase.
Fortunately, FinanceBoston has years of experience in dealing with these situations. We have helped many clients restructure their “busted” construction loans by leveraging our deep lender relationships and intimate market knowledge to restructure the debt and proceed with the project.
If the overruns are too great, then another strategy to consider is an equity recapitalization. For quality deals that need one key ingredient: cash, we can help arrange that via an LP investment to inject fresh liquidity into an otherwise promising project. If you need cash plus expertise, a co-GP can often be arranged.
Know that these strategies are not for every deal and every situation, but the only way to find out is to start the discussion.
FinanceBoston Provides Real Estate Capital and Advisory Services to Investors and Developers.
FinanceBoston has the experience, relationships, and expertise to get you the most advantageous financing solution. Contact us today, or Request Financing here.
