Seeing long-term projects to completion in a market subject to changing conditions can be challenging – it is also a scenario property developers and real estate investors navigate on an ongoing basis.
Beyond the well-established parameters affecting real estate development, such as the economy, interest rates, income and demographic shifts, emerging global factors can also impact planning and execution.
Supply chain disruptions and skyrocketing material costs, for example, can pose serious consequences for the profitability, or even the viability, of a project.
Given the complexity of such circumstances, it makes sense to work with a construction financing partner committed to finding solutions that give a project the best possible chance to succeed.
This is Freedom Capital’s value proposition, explains Pip Dhaliwal CEO of Freedom Capital.
“We want to help our clients realize their vision,” Dhaliwal explains.
“We believe this requires a relationship rather than a one-time transaction. We consider ourselves part of their team – along with their lawyers, architects and engineers – and we’re just as committed to bringing their project to success.”
With team members who have an extensive background in property development, and an impressive network of partners in the lending and mortgage solutions space, Freedom Capital takes a unique approach to working with clients, he says.
“Rather than requiring them to check all the boxes the way a traditional bank would, we start by asking, ‘What do you need? How can we help?’”
Expert advice can set a project up for moving in the right direction, and Dhaliwal says this includes covering the basics, from choosing the right entity to buy and develop and evaluating the market potential – to getting financed and ready to go.
“We really understand what is happening in property development,” he insists. “Our team includes people who’ve been successful in the industry for over 15 years and know about the ups and downs of the market.”
For example, a slowing down in the local market currently has significant implications for pre-sales being planned for the near future.
“One of the most common concerns we see at the moment, especially with traditional mortgage providers, revolves around the ability to pre-sell units,” says Dhaliwal. “Yet while listings may no longer sell out in hours, we believe the demand is still there.”
With many people waiting to see what is happening with rates, there is a “pause that can represent an opportunity for investors,” he suggests. “This can make it easier to get a certain property since it’s no longer a multiple-bid situation.”
In order to act on emerging market opportunities or adapt to changing circumstances, developers need a partner who provides “fast approval and sound advice on financing projects” – and Freedom Capital offers both.
“We’re able to provide custom solutions that can include financing options that are different from those offered by traditional lenders,” notes Dhaliwal. “Every development project is different, so a cookie-cutter approach doesn't really work.”
Even troubleshooting for challenges like supply chain issues, labour shortages, or project delays doesn’t fall outside the scope of Freedom Capital’s purview.
“Where we don’t have solutions [in-house], we have contacts in the industry that can offer advice or help to come up with strategies to negate some of these effects,” he says.
“We’re also able to look at a client’s entire portfolio – rather than just one project – when it comes to financing decisions,” says Dhaliwal.
“Many of our partners are working to build up real estate over the long term, and we want to help them be successful not just today but for the next decade.”
Understanding developers’ overarching goals brings an appreciation of their contribution to shaping neighbourhoods and communities, he says.
“That’s what they do: they have big visions. And they need someone who understands that vision and who helps them tackle the challenges they might face along the way.”
With the right partner, says Dhaliwal, “anytime is a good time to be part of the market.”
For more information about what Freedom Capital’s private, commercial, and alternative lending services, visit freedomcapital.com.
