How do property developers raise capital?
The cheapest way to raise capital for property development is to take out a development finance loan. This is because using someone else’s equity is nearly always more cost effective than using your own. Find out more in our Easy Guide to Development Finance.
Why do smaller development finance loans have higher rates of interest?
Why would banks offer lower interest rates for loans?
It’s not always the banks that offer the best interest rates, so Brickflow searches over 30 lenders, enabling you to compare in minutes.
What is a tranche in development finance?
For example, Tranche 1 could be for site demolition, clearance and set-up, and Tranche 2 for ground clearance, drainage, basement excavation & construction, and so on.
What is a joint venture in property development?
A collaboration with another party who has skills or experience that you don’t, required to make a strong enough case to a lender to secure development finance.
For example, if you’re an estate agent or planner, it’s likely you’ll be great at finding the best sites but might need to bring in a project manager with more practical skills. With joint ventures, it’s essential to agree Personal Guarantees early on.
Is it possible to get a mortgage loan against a plot?
Yes, this would be a development finance loan. To find out more, read our Easy Guide to Development Finance.
Can you get a development finance loan to buy a shop or a commercial property?
Yes, this is a specialist type of loan called Commercial Property Development Finance. See below.
What is Commercial Property Development Finance?
Property finance that is loaned for the development of a commercial property. This includes offices, warehouses, logistics space, student accommodation, retail space and PRS (private rental properties).
Want to learn more about development finance so you can win more clients?
Click here for our Development Finance FAQ’s / Explainers