Imagine this: you’re an award-winning regional residential developer with almost 30 years of experience, closing anywhere from 200-1,700 properties per year. Due to your experience, you’re able to tap into upwards of $40 million in capital and then one day… that access is gone.
That’s the reality which not just our client, but developers nationwide experienced this past year when the banks decided to pull back on AD&C funding in an attempt to mitigate their exposure in a tough market.
Not only are they limiting the amount of loan approvals, but they also started tightening restrictions on multiple aspects of project development – like controlling the number of draws and properties to be completed at each stage.
This sudden change in bank posture puts every developer’s business business in jeopardy. How are developers supposed to address the 10-year housing demand deficit* when their funding is restricted?
Luckily, our private equity fund stepped in to aggressively fund AD&C deals just like this one. Unlike the risk-avoidance banks with slow and painful due diligence, private equity funds provide customized, flexible solutions for specific industries and types of deals – making them faster and way easier to work with.
Instead of getting the runaround and being asked to jump through hoops, our client was offered easier, flexible access to capital at a comparable rate to the banks (if the bank was still lending on these), with NO limit on draws, and a 30-day closing.
If you’re an experienced developer with a history of success, who’s ready to solve this housing crisis – but you’re also running into challenges with funding – please call us right now at (888) 959-1648 or email us at email@example.com.