There are three ways that BPF Solutions can help commercial real estate.
#1: You want to buy a revenue-generating building or wish to refinance your existing property and take some money out and you want to do it at a cheaper rate;
#2: You want to build a residential or commercial property and need help in planning and/or just funding for the acquisition of land and for the construction, and
#3: You have some money but not enough to fund the entire project by loan alone. You may need both equity as well as debt financing to complete the project.
In this blog, we are going into depth with #2 type projects, i.e. Financing of construction projects.
Construction projects consist of several steps:
- Acquisition of land;
- Get municipal approvals for zoning, site plan and construction permits;
- Prepare construction budget based on numbers in compliance with cost Consultants.
- Profitability Analysis- whether it’s a condo project or a revenue-generating property like an Apartment building or rental office – will give value to the project. This will determine the value to the value and will impact the borrowing ability of the project.
- From planning to completion of construction, several types of help and support are needed by developers such as accounting, budgeting, cost consulting, project management, project financing, etc.
To assure the success of the project, BPF Solutions can help in one or more areas to maximize the success of the project as well as its borrowing ability at a lower rate and higher amount. Although BPF Solutions has a brokerage license and uses banks, credit unions as well as private lenders as a source of funding, it is a consulting firm as well. The presentation made is prepared or verified to protect the credibility of the developer as well as maximize the Loan to value on better terms.
No matter who the lender is, either banks or private lenders, the important thing is the business circumstances. There are several banks and hundreds of private lenders that offer commercial real estate loans, yet it is important which bank or private lender is more appropriate to the business circumstances as each one of them has slightly different criteria. Knowing their criteria and knowing what types of information should be provided are highly crucial as a single wrong piece of information can have an irreparable consequence on your process and even last forever.
Mortgage Brokers’ VS. BPF Solutions’ approach
When a deal is submitted to mortgage agents/brokers, they take the package and reach out to several banks and private lenders they know in search of anyone who would fund the deal. As a result, either some lenders will make an offer or ask for an explanation resulting in some modification in budget etc. thus resulting in the change of some numbers. Thus the final presentation is not uniform to everyone and the whole market gets to know the project is not in a flattering manner.
BPF Solutions has expertise in financing and real estate structuring and has total knowledge of the requirements of every lender such as their profile, type of project they finance and other criteria. Sometimes, BPF Solutions spends weeks and months working with the client doing their financial statement to prepare a perfect profile and description or business planning proposal. Finally, the most appropriate lender is selected among the top candidates who are most qualified.
BPF Solutions success rate in this service is 80% at the first attempt and 100% in the cases that have been attempted for the second time.