Although most property development projects tend to radically differ from each other in terms of the actual work itself, they all share one key requirement. The primary underlying factor in terms of a developer being able to successfully deliver a project while simultaneously generating a healthy return is the ability to acquire the relevant funds to ensure that the task can be completed in a timely manner without exceeding the budget. Whether you intend to refurbish existing real estate or construct a new residential or commercial building from scratch, appropriately sourced property development finance will typically always serve as the dividing line between prosperity and failure.
In an ideal world, the developer would always have the required funds at their disposal without ever having to look elsewhere for help. However, in reality, this is seldom the case, and this is precisely where an expert property development finance broker can make a colossal difference, particularly in terms of ensuring that a project can be completed cost-effectively while increasing profit margins. If you happen to be a property developer and you are looking to improve your odds of getting a good deal on development finance, then there are a number of steps you can take in order to gain access to the competitive funding solution you ultimately need.
Here are five essential steps that will help you achieve the best property finance deal while ensuring your application is approved without any complications.
1) Whether you are applying for development funds for the first time or you are already highly experienced and well versed in the world of development finance as a borrower, one of the most important things you must do when completing your application is to always remain transparently honest with your lender from the outset. If you are realistic about your plans and can identify your business goals, financial standings, and even your fears or concerns (i.e., whether you may need to borrow more funds at a later date should an unforeseen event occur), the development finance lenders you approach will be more comfortable and inclined to deal with you.
2) Previous experience always plays a vital role when trying to secure development finance for a given project. Even if you are relatively new to the game yourself, the ability to show a lender that the people you will be working with on a project are suitably qualified and capable of completing the task at hand will ultimately improve your chances of accessing the credit you need. This includes architects, interior designers, builders, plasterers, and anyone else involved. In a nutshell, when you show a prospective lender that the people you have on board for a project are qualified, experienced, and reliable, with proven track records and quality references, the confidence they will have in your project will increase exponentially.
3) When it comes to development financing, the decision to lend is also based on numbers, hard facts, and figures. If you can demonstrate the feasibility of the project in an accurately numerical fashion, lending confidence increases further, and your chances of being approved for a property development funding package with a low rate of interest will also be much higher. Basically, you need to show the lender that you have done your homework and that your ambitions to succeed are realistic and achievable.
4) When applying for development funding, always make sure that you are confident in your own ability to see the project reach fruition. If you show any signs that you have outstretched yourself, either as a borrower or a property developer, your lack of self-assurance will be quite off-putting from the lenders’ perspective.
5) Regardless of your level of experience when dealing with or applying for property development funding, it is always useful to talk to a qualified and well-recommended professional who will discuss all the options available to you while taking your unique set of circumstances into consideration.
Additionally, when you apply for development finance online using an FCA-authorised and regulated broker such as UK Property Finance, you will also gain exclusive access to a diverse panel of mainstream lending facilities alongside a unique set of private investors who will be interested in funding any individual project based on its own merits. You should also be aware that many of the development funding options available through a specialist broker may not be available through other channels, even when approaching a specific lender directly.