Finding the right products and services for experienced property developers can prove more complicated that it first appears. With a wealth of specialised finance available, it is always important to know what will suit your client, and which clients will suit you.
Guiding us through the intricacies of catering for more prolific developers, Michael Magee, Owner of commercial and development lender Development Finance Bank, uncovers his top 10 tips…
Tip 1: Finding developers who could qualify for mezzanine finance
Talking to your existing clients can yield surprising results. Often, developers will have more than one project on the go at any one time or will be looking at taking on multiple deals. With less cash to contribute on the next project, it’s often these deals that may suit a mezzanine facility.
We talk to developers every week who have never considered mezzanine finance - partly due to misconceived ideas about the cost - yet when they understand the extra capacity it can offer them, they start to realise the value in exploring this type of funding further.
It may seem obvious, but a simple call to your existing developer client base to find out how their projects are progressing and a few probing questions about the level of debt needed for their next project will near-guarantee leads.
Leave a comment