Finding the finance needed to progress a property development project to site is often reliant on presenting the correct funding offer. Lenders will need to be convinced that the project is not only profitable, but that risks can be adequately managed.
A full overview of the property being developed – such as location, scale, number of units and likely end sales value – is also vital. This should be supported by a robust build cost – including, where appropriate, land acquisition, professional fees and contingency, which all point to accurate planning.
A convincing exit strategy helps in getting funding. There must be a clear and logical means by which the loan will be repaid, through sale or rental of, or through refinancing – in the form of a medium term loan, a high loan to value facility or perhaps an ultimate exit to long term loan.
Cash flow projections, projected profit margins and property bridging loan to cost figures need to be realistic and should be included – with supporting details such as comparables of previous sales and average rental values of similar properties if available.
The overall funding pack will be clearer and be accepted and actioned far more quickly when it includes well prepared planning documents, development schedules and a professional build cost – providing the funding offer of property development loans.
