Services

Alternative financing with a mortgage guarantee that covers a high percentage of the purchase price of the land and other initial expenses such as the cost of the project. The maturity of this financing is usually 12-18 months, in order to have enough time to obtain the building permit and the pre-sales required by the bank financing. This bank financing repays the Bridge Loan in the first provision of the Land Tranche of the bank Promoter Mortgage Loan. The payment of interest can be carried out periodically or at maturity.

Alternative financing with mortgage guarantee that works in a similar way to a bank Promoter Mortgage Loan. This alternative financing is more expensive than bank financing but on the other hand, it is more flexible and covers a higher percentage of project costs. An initial provision can be included that covers a high percentage of the purchase price of the land and other initial costs. Subsequently, new provisions are made via construction certificates to cover construction costs. This alternative ensures the successful completion of the operation until the delivery of the homes, regardless of whether bank refinancing is obtained during the course of the operation. The term of this financing is usually 36 months. Interest payments can be made periodically or at maturity.

This is an alternative financing considered subordinated since only the pledge of the company’s shares is provided as collateral, and no mortgage guarantee is provided. It allows a percentage of the purchase price of the land and other initial expenses to be covered, leaving the mortgage guarantee free for the bank Promoter Mortgage Loan, which will cover the construction costs. This financing is carried out with a single provision at the beginning and usually lasts 24-36 months, coexisting with bank financing. Interest payments are usually made periodically.

It is a hybrid instrument closer to capital than to debt. In the same way as mezzanine financing, only the company’s shares are pledged as collateral. The main difference with debt is that the terms are flexible, thus reducing the risk assumed by the developer. This alternative also covers a high percentage of the purchase price of the land and other initial expenses in the first provision, leaving the mortgage guarantee free for the bank Promoter Mortgage Loan, which will cover the construction costs. This instrument usually has a preferential return for the lender and developer throughout the course of the operation, and a distribution of the profit at maturity. This instrument is the most expensive of all the alternatives due to the type of guarantee and flexibility in terms of time.