Succeeding as a property developer often comes down to nothing more than whether or not the required development finance can be accessed. From first-time buy-to-let landlords right through to those with more extensive property portfolios across the country, this is the very definition of a sector where it takes money to make money. And if you do not have the money available yourself, you need to successfully secure it from an appropriate lender.
The good news being that these days, there are more available options to explore than there have ever been. From secured loans to second mortgage products to bridging loans and countless others besides, there is the perfect product out there to suit every need. It’s simply a case of finding it and qualifying for it in the first place – a process experts advise can be made easier with the following simple guidelines.
- First of all, it is of critical importance to be 100% accurate and honest, with regard to every aspect of your business, financial situation, plans, prospects and so on. The reason being that it is so much easier and more sensible to mitigate any potential issues at the earliest possible stage, rather than find yourself in a situation at a later date when you are forced to backtrack. Not only can the latter approach land you in trouble, but lenders in general tend to prefer those who are clearly honest and know exactly how, when and why to acknowledge shortcomings, limitations and so on.
- In order to secure development finance, you will need to be able to comprehensively demonstrate that your own experience and that of those you employ/work with qualifies you for the intended purpose of the loan. Ideally, this will mean providing examples of current and previous projects, which have met with success. Rather than simply trying to persuade them you’re capable of getting the job done, show them you can using examples and case studies.
- The same also goes for supporting documentation by way of hard figures and accountancy records. It’s important to remember that when it comes to the provision of loans in most instances, it is purely a numbers game. If you can produce evidence in the form of cost/revenue appraisals that are accurate, concise and paint a positive picture of your business, you are far more likely to be accepted.
- Ensure that you are as realistic as possible when it comes to both your expectations and your confidence in your own abilities, in order to avoid biting off more than you can chew. Or perhaps, giving the impression that you are inclined to bite off more than you can chew – hence limiting your likelihood of securing the required finance.
- Last but not least, the best advice is to always seek the required finance via an established and reputable broker with experience in all areas of development finance ideally directly authorised by the FCA. This is usually the best way of gaining access to not only the widest range of products available, but also an extensive contingency of lenders and service providers who may not be accessible directly. There may be financial services and solutions available that have not yet come to your attention, which could prove to be the most convenient and cost effective on the table. – https://www.ukpropertyfinance.co.uk