PHILADELPHIA, March 28, 2019 /PRNewswire/ -- Developers breathing new life into old properties, and eagle-eyed house flippers have one major problem in common: dry spells in financing and cash overruns. Par Funding, innovators of the most creative and effective funding solutions for businesses of all sizes, is proud to announce a new product designed to help real estate projects weather unexpected expenses, cash over runs, pay vendors, and bring projects to successful conclusions even when they run over schedule.
The program hinges on the equity already established in an ongoing project, and a projection of the equity that will result from a project's completion. Par Funding works with investors and business property owners to determine exactly how much financing is needed, then issues funds within 48 hours. In exchange, Par Funding receives a second-position lien to secure its position. This gives Par Funding some protection, while keeping its interests subordinate to that of the first mortgage company or other primary lender who issued the investor's primary loan. All without having to renegotiate their existing long-term financing vehicles or consider refinancing the entire project.
Second-position liens tend to be unpopular with lenders, since they are often considered high risk compared to other forms of collateral, and far fewer options are available on the market for non-primary residences. That's where Par Funding's years of experience come into play.
"We look at these sorts of products as investments in success," notes Joseph Laforte, Par Funding's Sales Director. "We analyze applications for financing the same way our clients analyze potential real estate investments: with a clear eye toward each project's risks, opportunities, and prospects for success. That lets us issue funding to the business likeliest to make the very best use of it.
"Some companies wouldn't think about taking a second-position lien," Joseph continues. "But we're not your traditional financing company. We like to think that we're the best at what we do, and we're proud to make the most flexible options available to our clients who can use the short term cash infusion."
To learn more about how Par Funding is helping preserve the dreams of rehabbers and honor the vision of property developers visit https://www.parfunding.com/about-us/
Established in 2013, Par Funding is the leading provider of short-term financing to small- and medium-sized businesses throughout the United States. Joseph Laforte is a team leader at ParFunding.