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We need to find the best, most profitable way to fund the project.⠀
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Our most used funding product is development finance, this allows us to not only borrow against the purchase price but also the development costs, these types of products are only available to experienced property investors & we must prove that we have assessed the project & the profitability. These types of products will usually require the property to either; not need any planning permissions to uplift or have planning permission in place. ⠀
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Puchase timings? ⠀
Often the properties we find are secured at a significant discount to the open market value, that means we need to exchange contracts quickly. This requires us to find a swift solution to the finance. ⠀
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Property condition? ⠀
If the property is ready to let then we will look at a buy-to-let mortgage, if it needs some work we will consider development finance. If it is not mortgageable due to condition or lack of planning permission we will usually look to use bridging finance/private investor. ⠀
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What is the best choice to offer the most profitable end result to the project?⠀
We look at the balance of speed of implementation V’s profitability & availability. It’s not always the cheapest that is the most profitable when you factor in added time due to slow response time/risk of losing the project due to delays. We have to make sure we get this balance just right. ⠀
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Funding timeline? ⠀
We look at how long the project will take to complete & consider this within the decision of balance. Often development finance, bridging finance or private investment on a short term basis will be at expensive % rates, so we look to exit from that solution quickly onto a more appropriate product. ⠀
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This is why our selection process & due diligence assessment of a project is extensive when selecting the properties to buy, to enable
swift action & full knowledge to act quickly to fund the projects.
– Tina Wenham⠀
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To find out more or how we can help you find the right property investment, please email us on information@targetfive.co.uk