As a hospital owner, beginning to consider a construction project one of your first calls should be to a lender. Over my twenty years of handling these calls from hospital owners there are a few key areas I believe a good lender can help you start down the right path on your construction project.
Identify Different Loan Products: The financing structure you choose to fund your project will impact maximum project budget, timing on accessing funds or required documents to receive loan funds and most importantly personal cash outlay. A strong lender will provide insight into the requirements of different loan types including; conventional real estate loan, SBA 504, SBA 7(a) loan, or and a business equity loan to allowing you to finance 100% of your construction project. Completing the right upfront diligence on the financing structure will build a foundation for a successful project.
Guide you on the construction and project budget you can afford: I have been involved in over 150 different veterinary hospital construction projects. The largest obstacle clients have experienced is a having an amazing set of plans for a dream facility, and finding out too late the financing budget wont’ support the cost to build. When beginning to consider a construction project one of your first calls should be to a trustworthy lender, they will help you set out your budget ensuring you will have the funds to build your dream facility.
Referrals: The hospital owners I have worked with during my career are only building one facility, and therefore don’t have a wide breadth of architects and contractors in their rolodex. As a lender I work daily with different contractors and architects, most lenders are very excited to help refer you to people they have had a positive experience. This can reduce the time you need to allocate to speak with the right people or find someone that will be a good fit for your project.
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