Identify why the gap exists
Separate a temporary timing problem from a property that cannot support its existing obligations. Review operating cash flow, remaining costs, loan maturity, reserves and the amount needed.
Compare the available paths
Options may include an extension, loan modification, refinance, seller financing, mezzanine debt, a sponsor contribution, a revised project or a sale. Availability depends on the property, documents and the parties involved.
Test the combined obligation
Adding a loan increases the amount to service or repay. Model the property after the proposed transaction and test a delayed exit. Identify the source of each repayment rather than assuming future financing will cover it.
Work from the documents
Compile current loan statements, loan documents, operating financials, the remaining budget and the proposed business plan. Coordinate lender discussions with transaction counsel where amendments, consents or enforcement issues are involved.
Build a cash calendar first
List the dates on which money is needed: loan maturity, contractor payments, taxes, insurance, tenant improvements and other unavoidable obligations. Then identify cash on hand, usable reserves, operating receipts and funding already committed. A monthly cash schedule can reveal a near-term shortfall that a total project budget hides.
Distinguish proceeds available immediately from proceeds contingent on future work or approvals. An additional loan that cannot close before the critical payment date may not address the immediate problem, even if it improves the longer-term financing plan.
Give each alternative the same test
An extension may buy time but require a paydown or additional reserves. A refinance may change recourse, debt service or prepayment restrictions. A smaller project scope may preserve cash but change the expected income. Compare each path using the same operating assumptions and deadline.
The useful outcome is a plan with an identified source of funds, realistic conditions and a repayment path. Compile the loan documents and current financials early so lender discussions are based on the actual obligations and property performance.
Discuss your property financing or explore sponsor consulting.