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commercial project vulnerability

Commercial Project Vulnerabilities Part – 1

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Commercial construction projects can be a vulnerable investment. One wrong step can completely change the course of your project and make or break it. This is why it is so important to properly protect your investment. 

Did you know a commercial construction project is at its most vulnerable state when it is approved and underway? This is because developers face some of the most significant challenges after construction begins. 

What Are These Risks?

Project managers typically implement precautions for long-term risk. But they fail to take into account short-term problems. These problems have the potential to grow quickly and seriously affect the bottom line.

 

Any seemingly little problem, such as unreliable subcontractors, scheduling difficulties, or shifting stakeholder preferences, has the potential to sabotage a project. Therefore, it’s crucial to have backup plans.

 

These backup plans come with added financial demands that cannot be met with a delayed or insufficient cash flow. 

 

Late payments could have a detrimental effect on a company’s financial flow. As a result, funding sources for other projects may run dry and there may be delays in the project’s overall development. 

 

This can cause the invoicing procedures to change, especially if you chose to work with a draw mortgage. Construction developers need to make sure that their cash flow does not adversely influence their projects by curating a sufficient follow-through. 

 

However, this is easier said than done. 

 

Banks and bigger lenders consider commercial construction mortgages as one of the riskiest mortgages in the business. This is why they are terribly stringent with construction developers. One wrong move and you might find yourself with an incomplete project and no source of funding! 

 

This, paired with unrealistic expectations from stakeholders or bad forecasting can make finishing a project seem like an impossible task. 

How Can Freedom Capital Help?

These problems are often made worse due to larger banks and their inability to satisfy a developer’s needs. 

 

This is where Freedom Capital can help! 

 

We work with our clients one on one to ensure your financial investment is completely protected and in safe hands. Unlike banks, we take into account the entire financial picture and get you the best possible solution to your situation. 

 

At Freedom Capital, our team of experts possess in-depth knowledge of the construction process, from rezoning to multiple builds and more. Our years of experience in the real estate industry also ensure we possess the knowledge and skill required to seamlessly satisfy your needs. 

 

From construction cost overlays to vulnerable investment strategies, construction developers have an endless list of problems they could face during the build. At Freedom Capital, we aim to be your one-stop-shop solution to every issue. 

 

Freedom Capital gives you the confidence and security you need to get your project to the finish line and easily bridge into future projects without the fear of uncertainty. Interested in learning more? Get in touch with us today! 

 

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