Top Ten Tips for raising finance for experienced developers: Tip 8

Top Ten Tips for raising finance for experienced developers: Tip 8



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 8: Comparable Evidence

Development finance lenders have many concerns when deciding on where to lend their money and one of the biggest issues is the issue of sales. Will the flats sell for £400 psf or £500 psf, are the houses right for the street ?

To get comfortable with the proposed project, lenders spend a lot of time working on comparable evidence for units that have sold locally. All lenders will do their own due diligence on this, however it will help if this information can be presented as part of the pack. Prepare a spreadsheet with the address of the comparable sites, list advantages and disadvantages such as noisy road, parking, long walk to the tube station etc., list the unit values, area sqft and work out the pound per square foot (psf), has it sold or is it under offer and any other interesting notes. Linking to the agent's website or the developer's website is also very useful as are photos of the developments. Take the time to produce this, stand out from the crowd and greatly increase your clients funding potential.

To read all the tips to date please click here.

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