How To Get 100 Percent Jv Property Development Funding
Isn’t it a disappointing feeling when you find a prime development opportunity and then you find out it is just out of your reach financially?
You feel you have got the idea, skill, passion, and commitment to make the development the best that it can be but your financial situation is holding you back. Have you thought of minimizing the risk and making the development affordable via using a joint venture for property development?
If not, you really should.
This article will cover everything you need to know about Joint Venture property development funding.
Joint Venture in Detail
Joint venture or equity development finance is a type of loan in which two or more developers pool their resources to finance development through to completion.
Unlike other more traditional funding routes to property development finance, it can be possible to access up to 90% of the development amount for a project through equity development finance. And 100% of the money may be available for experienced developers with a well-known track record of well-managed projects.
Advantages of JV Property Funding
One of the most remarkable benefits is the downside security that comes from investing in an asset-backed opportunity – first the land and then building on the land. They will typically hold some value.
It can offer funding opportunities from £500K to £10M, depending on the project. Up to 90% or 100% of the cost may be available for very experienced developers. You can even secure entire development costs from a single source. Joint venture partners often give the developer the option to ‘roll up’ interest to pay at the end of the term of finance, minimizing ongoing costs and freeing funds for the project.
Its funding can be used for the following purposes:
- New builds
- Commercial developments
- Flat developments
- Mixed-use properties
How to Get JV Property Development Finance
You may be able to enter into a joint venture with an experienced developer or an established property development company. Many developers are willing to be a part of remarkable ventures. Most of the time they are only accessible through financial brokers, who will be able to find which investors are most likely to be interested in the project.
Joint venture investors want to see:
- Evidence of profit margin
- Project estimated value
- How many developers contribute
A JV application must include;
- Developer resume
- Link to company website
- Feasibility study of the scheme
- Purchase status
- Evidence of 10% funding
Development finance is complex. Contact Finspace to find a joint venture partner. Call us to arrange a discussion meeting for your development project with one of our specialist brokers. More details on finance development and other mortgages are available at Finspace Group website.