Success with construction loans, at the all-important “take-out” stage, requires:

  • Timely completion of the project, within budget or at a workable cost
  • Completion, free of litigation or mechanics liens
  • Realization of projected income from the development

The length of the construction process and the high level of dependency on a series of future events give construction lenders, takeout lenders and borrowers far greater exposure to market and economic changes that occur while funds are at risk.

While you may or may not believe there will be any significant change in the economy or real estate markets, increasing interest rates and a 10-Year Treasury at about 3% have a definite impact on cap rates, real estate prices, loan interest rates, and lease rates.

Our panel of experts survived not only the “Great” Recession, but even some of the “not so great” ones before.

Invest 59 minutes. Prepare yourself for “when the take-out lender doesn’t fund”

  • Structuring the loan to serve both take-out and construction lenders
  • Borrower and construction lender solutions
  • Considering “mini-perm” courses of action
  • Re-configuration and change alternatives
  • Bankruptcy and litigation issues
  • Other solutions to the problem
  • Obtaining title insurance and escrow coverage for the takeout loan