How Real Estate Developers Secure Project Financing
Securing project financing for a real estate development in Toronto requires a combination of strong deal fundamentals, a credible development team, and a systematic approach to capital markets. The developers who close financing consistently are the ones who understand how lenders think and how to present their deals effectively.
The Financing Stack for Toronto Developments
Most real estate development projects in Toronto are financed through a combination of equity, senior construction debt, and in some cases mezzanine or bridge financing.
Equity typically comes from the developer's own capital, joint venture partners, or private investors. Lenders generally require a meaningful equity contribution before advancing construction debt.
Senior Construction Financing from chartered banks or institutional lenders covers the majority of construction costs. These lenders require presales, strong project economics, and an experienced development team.
Mezzanine and Bridge Financing fills gaps in the capital stack for deals that do not meet senior lender requirements, at higher rates with more flexible underwriting criteria.
What Lenders Want to See
Lenders evaluate your project on market fundamentals, your development track record, the quality of your construction team, presale velocity, and the overall financial model.
How SET Marketing Helps Developers Secure Financing
SET Marketing works with real estate developers to access project capital through traditional and alternative channels while building the marketing infrastructure that generates presales and investor interest. Book a strategy call to discuss your next project.
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