There are many issues facing small property developers and house builders in the current market, although the most pressing of all is arguably access to finance. This leads us to the issue of private finance.
The majority of property developers depend on a reliable source of finance to complete their projects and build their businesses. With traditional sources of finance now becoming more difficult to access, particularly for new companies, being a property developer is becoming increasingly more difficult.
Maybe private finance could now be a viable option?
Property Aspects Magazine spoke with Tom Ladds, founder of investment property finance specialists, Build Backer. Tom thinks that smaller property developers need to start looking further afield for their finance rather than to simply keep applying to, and facing rejection, by traditional lenders such as banks and building societies.
Tom commented: “As many will know, traditional lenders now have less of an appetite for lending to small property developers and house builders making borrowing from them a real challenge. However, that’s no reason to become discouraged. There’s now a whole market of private finance available specifically for property development, which can be obtained on better terms and at better rates than ever”.
Tom concluded: “The only issue can be accessing these lenders and assuring the loan is obtained on the best terms. That’s where we can help our clients. At Build Backer we’ve established a carefully curated network of private and specialist lending companies, as well as a community of private investors, all looking to lend to property developers and house builders.”
Property Aspects Magazine understands one of the benefits of using a private lender is the speed and simplicity of obtaining the finance.
Publisher David Lomas comments: “It is important to ensure the finance application process is quick and simple. By dealing with the decision makers at individual lenders, funds can be made available in less than two weeks”.
Please contact Tom Ladds about accessing private finance for your next property development on 01780 427 080 or visit www.buildbacker.com for more information.