Development finance can be a daunting task. It seems like every day there are new terms to learn and new ways of doing things. But it’s not impossible. In fact, with the right tools and resources, anyone can get into development finance.
What is a property developer?
A property developer adds value to land or property, as the phrase is more simply put. Whether they’re adding value by extending a home or on a much larger scale, purchasing a plot of land with the intention on building many houses to sell, there’s lots of potential for a property developer in their desired sector.
If you’re a first-time property developer and wondering if it’s worth it, keep in mind that it’s a high-risk, high-reward industry with many possibilities depending on your interests. The opportunities are endless as long as you have financial backing.
Steps for First time property developers
The first step to becoming a property developer is securing finance. This can be difficult if you don’t have the right contacts or much experience in the industry. However, there are many ways to secure finance for your project, whether it’s through a bank loan, private investors, or crowdfunding.
Once you have the finances sorted, the next step is to find a suitable property. This can be done by contacting a real estate agent or searching online listings. Once you’ve found a property that meets your requirements, the next step is to negotiate the price.
Once you’ve purchased the property, the next stage is to develop it. This involves planning permission, building work, and interior design. The development stage can be the most challenging and time-consuming, but it’s also the most rewarding.
After the property is developed, the final stage is to sell or rent it out. This is where your profit comes in. If you’ve managed to add value to the property, you should be able to make a healthy profit.
Of course, becoming a property developer is not without its risks. The most obvious risk is financial, as there’s always the possibility that the development doesn’t go to plan and you end up making a loss. There’s also the risk that the property doesn’t sell or rent for as much as you hoped, leaving you out of pocket.
Becoming a property developer is a big commitment, but it can be extremely rewarding. If you’re interested in the industry and are willing to take on the risks, it could be the perfect career for you. Just make sure you do your research and seek professional advice before getting started.
How we can help first time property developers
You may have had trouble obtaining financing as a first-time property developer because of your lack of expertise. Our experienced brokers utilise a unique system to reduce any potential hazards in order to make you seem appealing to lenders.
This is what we can do for you:
- Analyse your project with you so that we can find the best way to present it to potential lenders
- Attain the required permits for your project
- Value the land or property you wish to develop
- Find the best financing options for your project
If you’re ready to get started, we can help you get the financing you need to make your project a reality. Contact us today to learn more about our services.