Funding property development

lessonlearned

Get yourself a good broker. Not only will they have all the best deals they will also help you put together your business plan and guide you through the process.

A good broker is worth their weight in gold.

Thrugelmir

lessonlearned wrote: »

Get yourself a good broker. Not only will they have all the best deals they will also help you put together your business plan and guide you through the process.

A good broker is worth their weight in gold.

No disrespect intended. Doubt that a mortgage broker would be the person to consult about drafting a business plan.

justjohn

Money talks - With cash this sort of thing is easier. Start off small and you will get bigger. From what you have said you equity/possible liquid cash is small. If you can move about the country it will be easier. You have not said if you are going to turn these around or rent the completed properties. You have to be pretty clever to turn a renovation around straight away in this market.

With cash you are an attractive buyer and you do not have banks too answer too.

lessonlearned

Thrugelmir wrote: »

No disrespect intended. Doubt that a mortgage broker would be the person to consult about drafting a business plan.

Obviously it would depend on the broker. You would need someone who was experienced in commercial lending and not just some learner who was attached to an EA's office and only did resi mortgages.

Mine would help - if only to make sure that the applicant had set it out properly, used the correct terminology etc.

It's all about getting the best advice from good professionals.

It's no different from consulting a planning officer before putting in a planning application to ensure you are on the right track and stand a better chance of getting your application granted first time.



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Knightofni

Thanks for everyones responses. I will have a word with the banks mentioned above to fund the next purchase. If it is expensive I think I'll just sell my other property and use the cash to purchase the next. This seems to go against what is normally recommended on the numerous TV shows but it seems much simpler. Thanks again.

Fullcircle_2

Hi
Ive just stumbled across this thread so I thought I would offer my views.
I use private investment to fund my developments. I offer a very good rate of return which creates the interest initially but differs dependent on the scheme

Its a fairly basic recipe to make it work and essentially needs the following
1. Committed investors
2. Good sites/schemes (95% are rubbish)
3. Good delivery mechanism
4. Track record

They are generally happy to roll funds over into the next scheme and take their return.

Im always looking for new investors so if you want some information then let me know or alternatively if you want some advise on how I do it then let me know also
Thanks

ACG

There are a lot of hurdles to overcome however as you do have an income and you have equity i would be pretty confident this can be done.

The interest rates would not be cheap - 10-12% per year, with set up fees on top, but it should be possible.

I would try to find a good broker - preferably one who is not fee free (as they are likely to invest more time into it) and also most importantly not one tied to an estate agents.