100% Funding
In the past, property developers have required a 50/50 lending ratio in order to secure an acquisition deposit and the build cost deposit when trying to raise development finance.
This is now being challenged by a new wave of lenders and property developers.
There are three ways to raise 100% financing:
1. Purchase the land under verified market value.
This involves the developer knowing the market and spotting the property development bargains.
2. Provide additional security.
Although this is not the most complicated solution it is one that is often overlooked.
3. Gross development lending (GDL)
This involves being able to foresee the end sales value of a property after building has been completed. This will also require the developer being able to prove their foresight to a lending part. This is usually done by having the project valued by a professional surveyor.
Source Commercial Finance can help and advise experienced and inexperienced developers to maximise their development project profits.
For more information and to speak directly to an adviser, please contact us.