Do Some Research before You Get Development Financing

As a developer you know the importance of finding the right funding for your project. It’s wise to choose a financial partner who can offer good advice, the best deals on the market, and reliable and trustworthy information that makes finding your funding easier and more successful. Knowing which investors and debt providers will work for your unique situation can make the difference in success or failure of your latest work. Let’s review some points to consider as you search for funding for your residential project.

     •   One of the deciding factors that you must first set is the rate that you will pay for residential development finance. This must be carefully considered because it can greatly impact the profit margin that you have set for this particular project. Ask if the financial advice is based on the whole market or only specific lenders. You must have the advisers in place that will be experienced with projects like yours and who are knowledgeable about what is available for your consideration.

     •   You must have all of your projected costs and expenses associated with the residential project in a format that is easily understood. Include all the relevant details so that you can get the money that you need to proceed with your work. As a developer you also know to include a percentage for overruns or unexpected costs that you cannot predict prior to commencing work. Find out how long you can have the loan, how and when you will make payments, and when your loan will be due in total.

     •   Next, you should determine when you want your project to commence and then begin the application process well in advance. Before you visit any lenders you should have all of your permissions completed and all plans documented and in a visible format so that you can convince others of your intent and commitment to beginning and completing this project. Remain in compliance with all legal issues so that you can show others that you are a developer that covers all details of a project and that you have a working plan to accomplish your goals on this project.

     •   If this is your first project, it will be well worth your time to meet with a professional broker so that you can begin to see what paperwork is needed to complete your application for funding and what you need to have in place before the actual process can begin. Finding good advice will get you well on your way to doing a successful residential project of which you can be proud.

Carefully plan your strategy for doing your residential project, have the facts in an organised format for lenders to review, and handle each and every detail of the pre-work planning that shows your commitment to honesty, integrity and diligent work that will get the job done on time and under budget.

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