Real estate (or property) developers help create the houses we live in, the places we work, eat and shop and the communities we live in. Real estate construction accounts for about 6% of the U.S. Gross Domestic Product and was as high as 8.9% in 2006. It also accounts for a significant portion of the nation’s employment. Without developers the country would not be what it is today. We remove the barriers to bonding so that you can continue to focus on community improvements.
Even though they are not performing the actual construction, Developers may be asked to put up surety bonds by a municipality, lender or contractor. Not every bond company understands Developers. Unlike standard performance and payment bonds, Developers are often involved in the financing of the project. This along with the completion requirements, time required to turn over the project and potential debt needed to complete the project are all items that can scare away the wrong bond company. Developers needs a broker and bond company that specializes in those obligations. MG Surety Bonds is different. We have programs designed for Developers. Our bond companies understand you and we work with them to find solutions so you can focus on your projects.
Whether you need to bond a $200 million subdivision or just a $150,000 plat bond, we are here for you. We are licensed in all 50 states and will work to get you a quick approval.
There are currently many opportunities for Developers, and we want to help. These opportunities include:
- A shortage of commercial space – Low inventory was cited as the number one concern in commercial real estate, leaving plenty of room for new development.
- Housing shortages – Strong economic data and a growing population continue to create a need for new housing. Affordability or rates could hamper this.
- Historically low interest rates – Creates an opportunity for long term investment in both commercial and residential markets.
- New Technology – Gives developers new ways to access capital and see customer demand in real time.
Don’t let the need for a surety bond slow down your business. Let MG Surety Bonds help you capitalize on these opportunities.
As a Developer you also face many challenges though including the following:
- Interest Rates – Rising interest rates that can limit the affordability of housing and commercial investment. It may limit also limit developers’ and owners’ willingness to borrow or finance new projects.
- Political Uncertainty – Legislation can make it more difficult to borrow or lend.
- Change in Financing Mechanisms – Funding from the public is ever changing and can make or break new projects.
- Rising Material and Labor Costs – Potentially making new projects unaffordable.
- Rise of Ecommerce – Changing how consumers shop and buy potentially moving away from retail.
- Generational Change – Where will younger consumers live and buy? This may look different than previous generations.
The last thing you need is a challenge from your bond company. Let us help. We love working with Developer and we want to be your bond broker for life!