|IF YOU BUILD IT…THEY WILL FUND
As conventional banks tighten their belts, boutique lenders can offer more innovative solutions to nonconforming loans. One such lender, MEECORP CAPITAL MARKETS, is among the leaders in creative commercial real estate financing. Case in point: construction and/or land development loans.
MEECORP has met the growing demand for construction funding by working closely with borrowers to construct a loan uniquely suited to their needs as those needs change over time. The loans are principally asset-based, so developers with cash flow problems and less-than-perfect credit need not be turned away. As Daniel Edrei, a principal in this family-owned firm, explains:
“Among other things, MEECORP loans are designed to enable the entrepreneur to capitalize on sweat equity and realize ambitious projects that might otherwise be unbankable.”
The lender’s intimate knowledge of the construction process provides a comfort level that enables them to loan on projects others typically shy from -- and to extend up to 70% loan-to-value. A familiarity with the ins-and-outs of construction also means that loans close in a matter of weeks, not months.
A developer in Arizona with limited capital recently approached MEECORP to fund the purchase of land and infrastructure for a subdivision with pre-sold lots. The lender was able to offer him an $18 million line of credit and the prospect of a sizeable profit.
Yet another borrower in Indianapolis was looking to subdivide some land and construct 70 residential units. MEECORP made available $3.2 million in revolving credit that allowed him to purchase the land, build model homes, do some crucial marketing, and see the project through to completion.
For borrowers looking to maximize their leverage, MEECORP also offers competitive Mezzanine loans. While these types of loans can sometimes be expensive, the demand is nonetheless high, since they’re considerably cheaper than taking on a partner or scrapping a lucrative project.
In addition to construction loans, MEECORP has successfully provided bridge and mezzanine financing for hotels, commercial buildings, mobile home parks, multi-family, health care, and recreational properties.