Getting financial investors for your upcoming property developments is never an easy task. From submitting paperwork after paperwork to get a bank loan to showing presentations to various investors, the process of securing funding for property development is an uphill battle indeed. However, as technology has advanced and the world has become better connected, property development finance became just a tad bit easier. So, for those of you builders and property developers looking to secure funding for your upcoming projects, here are some easy ways to get funds for property development in 2021.
Crowdfunding platforms
Due to the Covid-19 pandemic, people could not travel, and their useless day to day expenses pretty much became negligible. So, their savings increased. As economies started to suffer and businesses faced losses, only the stock market and the real estate market were considered safe investment options. As more and more people began looking for ways to increase their savings and maybe make a quick buck in their savings, the demand for real estate investment increased. Fortunately, various online platforms have popped up, which specifically connect property developers to investors. From small-time investors to high net worth individuals, property developers looking at raising finance for property development can find all types of investors on these crowdfunding platforms.
Lending websites
In the past few years, there has been a significant increase in the number of online lending websites. These websites have specifically been made for UK property developers to find funding for their upcoming projects. Some companies specialise in getting funding from high net worth individuals, while some secure funding from multinational corporations. Others use a combination of investors, private lenders, official lenders and upcoming businesses to secure funding. Sqft.capital is one such company that prides itself in raising funding for property developers quickly and consistently. Based on 14 metrics and a free appraisal tool, this company ensures that you optimise your profits while giving the least amount of equity. Based on your project details and your financial requirements, Sqft.capital finds the best lenders for you. Again, this is just one such company of many that are solely dedicated to securing funding for property developers. After all, what’s quicker and easier than securing 100 per cent funding for your upcoming project online?
Auction financing
Many property developers might not know this, but buying a property at an auction can save you thousands and thousands of pounds. However, at an auction, you need to have your finances in order. Now, that is where an auction property finance broker comes in. You need to tell your auction property fiancé broker details of the property that you have in mind, your financial status, the intended use of property, the completion timescale and so on. Your broker will even be able to help you find mortgages to pay off the auction amount, because believe it or not, you can get a mortgage to pay off your auction finance. So, you get to bid on the property of your choice and save thousands of dollars which you can then pay off with a mortgage that probably has a pretty low rate of interest. All you need to do is find a skilled and experienced auction property finance broker.
Joint ventures
If you can find a partner who is willing to fund your project, joint ventures are the best way to secure funding for your upcoming project. In the development world, joint ventures are pretty standard. A property developer finds a partner who is willing to pay the deposit and maybe even place security for the lender as a guarantee, and these two become partners. Usually, the terms of the partnership and the profit-sharing basis is finalised before any deal is signed. Once an investor and a property developer get into a joint venture, the partner provides the means to finish the project. In contrast, the property developer puts in the work to complete the project.
