Best Commercial Finance

Wherever you are in the country, you would not have to look too hard in order to find a development project that has failed or come to a grinding halt.

But why is this, surely in any market, there is a profit to be made?

The reason that many of the large developers have had to stop building is quite simple, they “banked” the land at historical prices, after all the strength of many of these PLC builders and share prices were based on their land banks.

Well in today’s market of falling end values and rising input costs; there is no profit based on the price that they paid for the land; potentially years ago! In fact, some of this land will be sold at a loss, as it is better option for some large builders.

In the current market, there are losers, however where there are losers, there must also be winners. This appears to be the time where the small scale developer is king of the jungle. 

Small half finished developments/ refurbishments, land at sensible prices, distressed sale ex-BTL properties needing refurbishment, repossessions; all going like hot cakes.

Where would you get a Development Loan from at the moment?

Property Development Loans are not as easy to find as they once were, the money is still out there and the lenders still need to lend. You just need to know where to look.

Here are some tips on getting a Property Development Loan:

Use a commercial finance broker who is a member of the NACFB (National Association of Commercial Finance Brokers).This organisation has standards to which its members must adhere.

Lenders are concerned with risk, so in the current climate they are going to consider any application very carefully. First time developers can still obtain a Property Development Loan, if the proposal looks good and the lenders has confidence in your ability to deliver. Wherever possible use an experienced broker, who will be able to communicate your proposal in the right way, ensuring that it ticks all the lenders boxes. A good broker will structure your proposal from a lenders viewpoint, giving him as much comfort as possible.