Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Raising Money For Property Development


In addition to finding the right property, one of the most difficult aspects of property development is being able to fund the purchase and re-development of the property before putting it back on the market.

Many would-be property developers have the skills and flair for property development, but lack the financial clout to put these into practice. So what are the options for funding a property development?

Property development mortgage

A good place to begin is to talk to your bank or building society about taking out a mortgage to fund the development, however most high street mortgage providers are not fully equipped to service the needs of property developers and are more likely to refuse finance.

A better bet would be to try one of the niche mortgage providers who specialise in providing finance to property investors and developers.

Mortgages provided by these companies are often repayable on an interest-only basis and in some cases it is possible to borrow up to 100% of the development cost, however the developer is often required to own the land on an unencumbered basis.

It is also worth noting, that as the risk increases to the lender, the interest rate on repayments will also increase.

Using other people's money

A cheaper way of raising money may be to borrow from other people, such as friends, family or colleagues at work.

The core advantage is that you are less likely to be saddled with expensive interest rates, but it is important to keep all business dealings above board and well documented, as it is all too easy for relationships to go sour if problems occur with the development.

Seek private investors

Another approach that the savvy property developer might take is to ask people to invest in the development, so that they can enjoy a profitable return on the sale.

This removes much of the financial risk from the developer and means that money can be spent on business expenses and not repaying high-interest loans.

Whilst selling a stake in the development is an attractive idea, it does require a good level of marketing skills by the developer to find and convince potential investors to part with their money.

Start small

It is still possible to find low cost properties around the UK, which are much easier to finance, before working your way up to larger, more profitable developments. Growing your property development business in stages allows you to gain valuable experience, reduce your risks and helps you to build up cash reserves to invest in future developments.

Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development

For more information, please visit our property investment and property development pages.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Palm Beach Daily News

Palm Beach real estate market shifting into higher gear
Palm Beach Daily News
With a new season upon us, Palm Beach's revved-up real estate market has continued its year-long shift into higher gear, driven in no small part by affluent home buyers whose wealth has steadily increased and who increasingly view the island as a ...



Real estate transfers: Reported Oct. 21, 2018
Herald-Whig
Real estate transfers recorded in the office of Adams County clerk and recorder. Quincy area. Russell F. Rohrer, property at 2000 State St., to Elias M. Wigfall and Lachelle M. Wigfall. Melissa R. Hinkamper, property at 1212 N. 20th St., to Melissa R ...



Mansion Global

Menorca's Real Estate Market Sees Rapid Growth
Mansion Global
One of Spain's Balearic Islands, Menorca is known for its natural beauty and has a reputation for being family-friendly and low key. It is the least visited and developed island in the archipelago, but lately it's been receiving more attention. Tourism ...



OCRegister

Commercial real estate: Catch the first wave, there may not be another!
OCRegister
Enlist your commercial real estate professional to take you on a tour of your competition. Sure, you can accomplish this on paper, but if you get in the car and look at other things available, you'll see the market through a buyer's perspective ...



Naples Daily News

Real estate briefs
Naples Daily News
Free real estate seminar. Naples' top real estate professionals are holding a public talk to help homebuyers and sellers avoid making common but harmful mistakes. According to local Realtor Jim York, who will be one of the professionals at the seminar ...



Real Estate Happenings
Charleston Post Courier
WHAT: This inaugural golf tournament fundraiser is sponsored by Berkshire Hathaway HomeServices Southern Coast Real Estate, with 100 percent of the proceeds going to nonprofit The Sunshine Kids Foundation (www.sunshinekids.org) providing group ...



Real estate transfers for Oct. 21, 2018
Roanoke Times
Federal National Mortgage Association to Morris Real Estate Management LLC, 1813 Eastgate Ave. N.E. Roanoke VA 24012, $64,900 10/02/2018. HSBC Bank USA to Victoria L. Epperly, 3401 Birchwood St. N.E. Roanoke VA 24012, $71,000 10/04/2018.



Forbes

Six Skills Real Estate Investors And Developers Need To Develop
Forbes
Being a successful real estate investor or developer requires the unique ability to see an opportunity where others do not. Looking at trends in other successful markets and recognizing those trends elsewhere are key factors in identifying opportunities.



Real-Estate Matters: Options exist for buying parents' home in private sale
The Columbus Dispatch
Q: My parents want to sell their house to me as part of a retirement plan. We're hoping to find a way where I can make a contract specifically with them so I pay them an agreed-upon monthly rate with some interest rather than going through a mortgage ...



Wall Street Journal

The Bullies of Real Estate
Wall Street Journal
“Bullying is rampant among real-estate agents, but you see less of it among the top-performing agents. The most common form of bullying here is a passive-aggressive running of the clock, which usually happens when buyers and sellers are negotiating ...


Google News

home | site map
© 2006 TIGER MEDIA