Securing the right funding for your project is one of the most important steps in any property development. For many developers, whatever your level of experience, this crucial step can be a real challenge in certain situations.
We’ve compiled some top tips for property developers to help you secure that all-important funding when the time is right.
1. Develop a comprehensive business plan for your development project
A business plan that is well-structured and covers all of the key areas can make things much more straightforward further down the line. Including elements such as the project scope, well-researched and realistic cost projections, timelines and preparing for various contingencies can be a powerful tool when it comes to speaking to lenders. By including market analysis, you can demonstrate the potential profitability and demand for your development.
2. Focus attention on your network
One of the best ways to get the most out of every property development project you’re involved with is to spend time and effort on building and maintaining relationships with others in the industry. Those with experience in various areas of the industry can be invaluable sources of advice, insight and practical support. Whether it’s local estate agents in your project area, other developers, tradespeople or even potential investors, your network can provide useful input in the short, medium and long-term, which can only help when it comes to financing your project too.
3. Do your due diligence
Before approaching potential lenders, getting all of your ducks into a row on the legal aspects of your project is a must. Make sure that all of your paperwork is in order for things like planning permission and regulatory requirements so that you can demonstrate to a lender that you’ve done your homework and see the probable challenges of the project as well as the potential profit.
4. Have a clear and realistic exit strategy
Every responsible lender is going to want to know how and when you plan to repay the loan. There could be various options open to you for this, including refinancing the development or selling, or a mixture of both, depending on the circumstances. Market conditions can change quickly, so having a plan A and a plan B can be the best option. This means that you can move forward regardless, once the project is complete.
5. Find the right lending partner
When funding property development projects, having the right lender in place can make the entire process move more smoothly at every stage. Partnering with a responsible, experienced property development finance specialist means that they have the expertise to help you navigate the various complexities of your project and finances.
Whether your property development is a renovation, extension, conversion or new-build project, working with a lender that tailors their service to your specific needs and offers flexibility can make all the difference to the success and speed of your development work.
Funding property development with Bridging Finance Solutions
We offer fast and flexible finance across England and Wales for a wide variety of different property development types. From self-builders constructing their own dream home, to teams of developers working on large multi-home projects, we pride ourselves on making fast decisions, offering the highest levels of customer service and quick turnarounds on funds. Find out more about our property development finance services.
Get in touch today to get the ball rolling on funding your next property development project.
