Developer funding... What challengers do developers face?

Discussion in 'Development' started by Gareth Bain, Jul 3, 2017.

  1. Gareth Bain

    Gareth Bain Member Forum Partner

    As a developer, what are the common challenges you face when raising finance?

    Is it a lack of experience, shortage of funds, funding is too expensive, limited availability of funds or the lack of credibility?

    It would be good to get an idea of the challenges developers face. It is often the case that developers are brilliant at finding projects and building them out but it can be quite frustrating when you have a perfect development but struggle to find the funds to build it out.
     
  2. realdeals

    realdeals Active Member

    Having no track record can be a killer for even the best deal. There is also limited flexibility from lenders, everything is either black or white - far too clinical these days.
     
  3. LandDevelop

    LandDevelop Banned

    We may be able to help you as Developer, raise equity for your development projects.
     
  4. Gareth Bain

    Gareth Bain Member Forum Partner

    You are not alone... We experience this on a daily basis so. A developer by nature wants to develop and grow their portfolio, however, lenders sometimes don't see it that way. Lenders want to see that you have built out similar projects or have a track record. It is more about you as a developer than the project itself. If the project is good why shouldn't it be considered on merit?

    For some lenders, it is black and white, but there are new companies entering the market every day that is disrupting the status quo. It's about finding the right company to work with that understands you and can offer you what you need. There is a lot of money out there so lenders should be working hard for your business and not the other way around.

    At Shojin Property Partners, we are a Crowdfunding Property Investment and Development company specialising in helping developers with funding, in-house expertise (due diligence) and co-investment.

    We like to work with developers and help them achieve their development objectives at no cost or expense to them as we charge no fees. In terms of the lending, we offer we can offer a developer 98% total cost of a development project over £2m.

    If you need any help in building your track record or have any lending questions, please feel free to reach out or visit our website www.shojin.co.uk or drop me an email [email protected]
     
  5. diyhelp

    diyhelp Active Member

    I think in simple terms developers are sometimes too optimistic and lenders are too pessimistic. Trying to find that middle ground can be tricky to say the least.
     
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