100% Property Development Finance – New Product!

Is it possible to raise 100% property development finance?  This is a question we are asked a lot and, I’m pleased to say, the answer is yes. Indeed, we have a potential ‘game changer’ loan product for small to medium-sized development businesses.

So, if you have found a great project, but are lacking the cash equity to contribute to a usual senior debt facility, then we might be able to help with this new JV product.  What is key here is the lender has set a minimum target return on GDV at just 23% (before finance).

This exciting new JV funding product features include;

  • Facility up to £10 million
  • True 100% funding from one lender
  • 50:50 profit split
  • No valuations
  • Interest at 1.25% – 1.5% on monies drawn

Needless to say, this joint venture lender offering 100% property development finance will have a strong set of criteria, and this will include;

  • “Entry level” and ‘Middle market’ houses and flats only
  • Max individual unit prices of £750,000
  • 4 – 14 units
  • Max term of 18 months
  • Strong experience of similar projects (as a contractor or developer)
  • Local knowledge – you’ll need to be based close to your project
  • Minimum return of 23.5% on GDV (before finance)

Developer Money Market looked for an alternative option for property developers to find their funding in a an easy, quick way where they can compare property development finance online

Achieving 100% Property Development Finance

Client experience is crucial to achieving 100% funding, you will need to be able to demonstrate a strong track record in a contractor or developer role. If a developer, you will need to complete the project on a construction management basis (rather than appointing a main contractor on a fixed price JCT contract).

Drawdowns are fast, often paid within hours and big-ticket items such as timber frames, steel, etc, will be paid direct by the lender.

Following the redemption of GDC and interest, the profit is a true equal share and not fixed, meaning that the more the project makes, the more there is to share.

While giving away 50% of your profit might seem steep, it is worth considering that the JV partner is providing all of the cash into your project. This can mean taking on a new opportunity that otherwise you may not have been able to do. This funding means an opportunity to diversify, derisk and scale your business.

For more information on this 100% funding then please contact us on 0207 096 2003 for an informal chat or drop us a message here.

You can also find out more about our services on our YouTube Channel here.

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