If you’re a real estate developer looking to get your project off the ground, you may need predevelopment financing to cover costs such as site acquisition, planning and design and environmental assessments. Predevelopment financing can be a valuable tool for developers, but it can be difficult to secure without the right knowledge and connections. In this guide, we’ll explore the different predevelopment financing options available to you and how GILKO CAPITAL can help.

Types of Predevelopment Financing

1. Land Acquisition Loans:
   These loans can be used to purchase land for development. Lenders will typically require a down payment of at least 25% and will evaluate the value of the land based on its potential for development.

2. Predevelopment Loans:
   These loans cover costs associated with planning, design and feasibility studies. These loans are typically short-term and can help developers secure other financing options for the construction phase.

3. Bridge Loans:
   These loans can help developers bridge the gap between the end of predevelopment and the start of construction. Bridge loans are typically short-term, high-interest loans that provide developers with the funds they need to move forward with their projects.

4. Mezzanine Financing:
   This type of financing is a hybrid of debt and equity financing, where the lender provides a loan with an equity component. Mezzanine financing can be used to cover predevelopment costs or bridge the gap between predevelopment and construction financing.

How GILKO CAPITAL Can Help

At GILKO CAPITAL, we specialize in commercial real estate financing and have a deep understanding of the predevelopment financing options available to developers. We work with a variety of lenders to provide our clients with the best financing solutions for their specific needs. Our team of experts can help guide you through the financing process and provide you with the resources you need to secure predevelopment financing for your project.

In addition to predevelopment financing, we also offer a range of other financing options, including commercial mortgages, construction financing, and mezzanine financing. Our commitment to providing customized financial solutions and building long-term relationships based on trust and transparency sets us apart in the industry.

Contact GILKO CAPITAL today to learn more about our predevelopment financing options and how we can help you get your project off the ground.