Development and site finance.

Discussion in 'Property Finance and Real Estate Loans' started by Nigel Moysey, Sep 24, 2018.

  1. Nigel Moysey

    Nigel Moysey New Member

    Can anyone help me.please? How do I go about raising 100% finance for siteb purchase and development. I have a voupke of gret sites in the pipeline, GDVs of at least £3.8m and £2.8m at 25%+ margin on each, but no funds. Help please!
     
  2. diyhelp

    diyhelp Active Member

    The problem you have here is that any investor supplying 100% of the funds would require such a large percentage of the return it would probably not be worthwhile you doing need. There’s also the fact that if you have money in a development then you are more likely to push as hard as you can to make it successful and maximise your return. Tricky....
     
  3. realdeals

    realdeals Active Member

    I would also be interested to know your source of finance bearing in mind the individual does not appear to have cash to put into the project. Surely any scenario would require giving up an enormous amount of equity in the projects?
     
  4. Longterminvestor

    Longterminvestor Active Member

    I am surprised that you are allowed to join the forum and start advertising your services via private messages? Not a very professional approach @Keith Simpson unless you have an advertising deal with the forum owners?
     
  5. Keith Simpson

    Keith Simpson New Member

    I am new to the site. The post has been removed, understandably. I have no intention of being unprofessional and regret than anyone views this as such. I saw someone asking for help and thought I might be able to.I asked the poster to private message me, rather than 'advertising' in public. I hope he finds his help somewhere.
     
  6. Longterminvestor

    Longterminvestor Active Member

    Hi @Keith Simpson

    It would still be good to hear your views on this type of investment - maybe a list of the pros and cons which we could discuss?
     
  7. Keith Simpson

    Keith Simpson New Member

    There may be another way of solving the OP's problem. If the OP would care to PM me, I can discuss it with him.Incidentally, I am not selling this service, just trying to offer some help.
     
  8. Surely if a partner has no capital of their own to invest they could potentially be held of a barrel by an investor with money - someone pulling the financial purse strings?

    Could you give us a little detail how this might work?
     
  9. realdeals

    realdeals Active Member

    Hi @Nigel Moysey

    Did you manage to raise the funds for your proposed development? I would be interested to hear how you got on.
     
  10. Gareth Bain

    Gareth Bain Member Forum Partner

    Hi Nigel,

    We can't help with 100% funding but we can help with 97%. Would that be suitable?

    We can offer a mixture of senior funding, bridge, mezzanine and equity. I would do an injustice if I tried to explain everything on here so please feel free to visit our website www.shojin.co.uk for more information.

    The way we look at it is why would you use your money when there are so many people out there that are looking to invest in property and just don't know how. We offer a solution to property investors and developers through our crowdfunding platform.

    Please feel free to reach out to our team if you have a project in the future that needs funding. Happy to have a conversation.

    Best of luck.
     
  11. diyhelp

    diyhelp Active Member

    Crowd funding interests me a lot. Would you be able to give us a comparison between the effective cost of crowd funding capital against traditional funding @Gareth Bain ?
     
  12. Jules1970

    Jules1970 New Member

    Hi Gareth

    97%?

    I understand you get help with the development but you have to be prepared to put down a substantial amount yourself on the purchase of the land? Unless you have a wealthy investor to JV if you haven't got the cash. Or is that where the crowd funding comes into play? Though with that you would have to apply and go through checks that they can invest in you.
    Plus have past development experience.

    Julie :)
     
  13. diyhelp

    diyhelp Active Member

    Property development crowd funding is huge - over the last decade it has gone from zero to £1.8b in property development funding. I like the idea of crowd funding companies investing as well. They will feel the gain but also any pain like a normal investor :)
     
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