Property Development

Property Development Finance is one of the most challenging forms of finance in the market. There are far more variables and equally more obstacles to be overcome so it is essential that you have the right people on board for your project from day one.

Too many times we see potentially good projects that have been shopped around the marketplace by inexperienced operators, which, by incorrectly presenting the finance analysis (or worse still providing no analysis and hoping for the best) had the deal bouncing from one Funder to the next. Unlike residential finance where you can just keep trying new Lenders, this is the fastest way to end the chances of funding your development project. Once a project has been shopped around and around again, it is almost impossible to resurrect, as the development Funder pool is relatively small. When a Development Funder turns a deal down, the next time it comes across their desk a polite “no thanks” will be issued and unless the project has had a major parameter shift, no will always mean no.

Experience counts for everything in this market and with experience comes knowledge. We have developed specialised analysis software that is recognised by our Funders and provides an industry recognised form of dissection of the finance requirements for your project, including extensive cash flow analysis and project feasibility funding tables. With these tools provided as part of our funding submission, your project will have already been given a thorough work over to ensure that the figures meet the requirements of the Funders.

So what are your options when it comes to development finance?

Primarily, the two main forms of development finance are Hard Cost Funding and Gross Realisable Value Funding. We will discuss both of these methods in greater detail below.

Of equal importance are the other types of funding for your project that can both help it along the way, and provide the right vehicle for the sale. These types of finance are Mezzanine Funding (ongoing with the project) and Back-end Funding (helping you to sell the project to the end users).

Does your development have more than 30% profit after GST consideration? You may not need any further cash input depending on your experience. A TRUE NO-MONEY DOWN product. Call one of our experienced team members to discuss or click on the “To talk about Property Development” drop down and we’ll get back to you shortly.

Due to our experience in development ourselves, nobody knows development finance like we do.