Sunday, April 26, 2009

New Funding Solutions For Condo Projects That Have Funding Obstacles

The great thing about the American construction developer is that the never give up. In the past 24 months the condo developers have had an impossible time getting financed. Several reasons were overdeveloping, bad price points and just the economy in general.

In my line of work, I saw lenders advertising their programs and at the bottom of their flyers, in large red letters they would post: "No Condos, Residential Developments, or Raw Land".

At last, a solution as arrived on the scene of this economic disaster for the condo developer. It's not exactly a condo solution, but it is a solution that a) makes sense, b) serves the market, and c) gets the developers back on their feet and back to work....which ultimately boosts our ailing economy.

The solution is simple: there is a new funding program in the private sector that is very flexible and very favorable towards mulitfamily projects and apartments. Developers don't have to lie or misrepresent themselves, they simply need to change their unfunded project into a multifamily or apartment project. Same tract of land, the structure can even be very, very similar. It simply cannot be called a "condo" project. The key to success is having a direct conversation with the funder, and sharing exactly what is in place now. The funder will then tell the developer exactly how the project needs to be tweaked in order to fit into the funder's funding footprint.

The other good news is the rates are fantastic. These are not "hard money" terms, which were the only solutions for these projects in the past.

Brian W. Walker
Walker Commercial Funding
Please visit our website for more information on our programs and services:
http://www.walkercf.com
brian@walkercf.com
(281) 852-8298
Skype: brian.walker7

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