First time developer with no building experience, looking to purchase land and build 3 properties.
Region:
Debt Raised:
Berks
£350K
It is possible to source affordable finance (0.9% per month) for a ground-up development by a first-time developer…
The Scenario
Client was a first time developer, with some equity in commercial and residential assets. They had some working capital (cash), however no building experience or history of funding residential developments – both of which are a standard requirement.
The Solution
Managed to fund 100% of the land purchase costs, along with 100% of the build costs. Total borrowing was £350k. Client has already sold 1 off plan (deposit received and offset against the loan) and offers on the other 2. The properties are not even completed yet – looks like they will be able to repay the loan early (without penalty).
The properties are on the market (and will sell for) a total of circa £550k. This not only generates a decent return on the initial investment, it’s a development funding debt fully repaid, so they have a healthy deposit for their next development and lower rates and costs for the funding.
Similar?
If this sounds like something you would like to do, it’s worth us having a 5/10-minute conversation. It costs nothing to talk through and even if we don’t find the immediate solution, we can certainly advise and plan how it can be achieved.
Get in touch here or use the form below, we can call you during the day or evenings/weekends.
Let us know when suits and we’ll find a solution/make a plan.