Despite the rise of construction and demand, commercial and residential developers are still lacking a steady source of funding for projects.
However, there are alternative financing options — including private mortgage lenders providing bridge or hard money loans and other alternative lending models — in place to fill gaps, GlobeSt reported.
Borrowers are increasingly relying on alternative funding to enable a residential or commercial property purchase or the start of new development, said Jeff Bartel of consulting firm Hamptons Group and private mortgage provider Benworth Capital Partners.
“Regulatory constraints remain an impediment for accessing debt financing that borrowers require to acquire or develop property under the traditional levered model,” Bartel told the website. [GlobeSt] –Mark Maurer