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 3: Getting a client’s basic details clear
When approaching a development lender, it’s good to get a client’s basic details clear in your mind and in a format that can be presented to the lender in a clean and simple document.
Most lenders can give a good idea of their potential appetite towards a deal with the following details. Keep in mind that although this list is preferred, obtaining this information is not absolutely necessary to get indicative terms:
• Developer experience, in the form of a CV. A client will be expected to provide both photos of previous projects and figures pertaining to sales, purchase price and build costs.
• Location of the new project and the type of property to be developed. Providing the floor area of the units can be useful.
• Construction costs, broken down into constituent parts, including fees and professional costs.
• Expected GDV (Gross Development Value) with, if possible, comparable evidence from local agents.
• Link to planning permissions on the local council’s website or, if available, a copy of the planning document.
• A development appraisal from the developer. Most will be able to provide you with a spread sheet.
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