Navigating the pre-development stages
These early stages known as “pre-development” make the project jump off the page and begin to take shape on the ground. Generally, this includes:
- Land acquisition
- Site planning & design
- Rezoning, entitlements & special use permits
- Infrastructure, transportation & utilities
Pre-development work is usually financed by the project sponsor and/or by equity investors who earn a higher return for betting on the project early. The right bridge loan, however, can preserve equity up-front. That’s where we come in.
Our funding gets your project through these early stages and into more of a turnkey site. Having maintained your equity during this crucial time, you can then focus on long-term construction financing and more preferable partnership options.
To illustrate, here are three pre-development scenarios we see very often:
- Real estate investment property identified, with capital needed quickly for the acquisition.
- Site is acquired but permits/zoning/entitlements still needed prior to securing long-term financing.
- Large tract requires subdivision re-platting and infrastructure before marketing to builders and developers.