Breaking ground on better terms: $2.9M construction mortgage secured midstream

Engagement type: Construction Mortgage

Location: Okanagan, BC

Total loan size:  $2,900,000

Lender: Credit Union

Goals achieved: Lower costs, Higher Leverage

Lakepoint was referred to an experienced developer by an existing client. The developer was building a mixed-use development including five townhouses + one retail unit. He had an offer from a private lender in place, but the lender was struggling to provide a final approval as the private lender was waiting on some payouts and did not have the funds to allow him to draw on the loan. He had previously worked with a mortgage broker, and this private lender was actually the second lender to make an offer for financing but not be able to follow through.

With an offer in hand, he continued to invest equity into the project so that it would not be stalled during the upcoming winter. With all his equity in and the Lender still not ready to fund the first draw, our Client found himself in a tight situation. After a detailed review and assessment by Lakepoint, we were able to clearly articulate the project's needs, it's risk factors and how those risks were mitigated, and ultimately were successful in securing the financing he needed to complete the Project. In addition, the funds arranged by Lakepoint were at significantly better rates and terms than the private lender. Most importantly, this lender was able to follow through and actually fund the project.

This was a challenging request as most Lenders will not finance a Project midstream but Lakepoint was ultimately able to find a solution at a higher leverage and lower cost than the original offer. This allowed the Client to repatriate some excess equity and continue completing the project on schedule.

If you’re facing stalled financing or need stronger terms to keep your project moving, Lakepoint can step in where others hesitate. Contact us to explore how we can lower costs, unlock higher leverage, and ensure your project actually gets funded.