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Would you ever give up half your development profit? This is what you may have to do if you source equity from an investor. Equity is expensive and, in our experience, returns are often in the region of 30-35% IRR. So why use it? Most people have an instinctive aversion to borrowing money. You don’t want to be in debt, if you can help it, because it'll cost you something. In property development, high leverage means more money coming off your bottom line. Keeping your leverage low means more profit. Simple, right? But sometimes, this ordinarily sound instinct can work against you. When you fund a project with senior debt alone, you usually have to put in quite a lot of your own cash to cover the shortfall left by the debt. This cash will remain tied up in the project until you exit and you won’t be able to use it for anything else. What happens if you come across a great off-market opportunity before you’ve finished your project? You miss out on it. This is where equity comes in. By covering most (or all) of the shortfall left by senior debt, equity leaves you with more of your own cash to put into other projects. So instead of doing one project and waiting to exit to get your cash out, you could do two or three simultaneously. Yes, using equity will mean your profit on each project will be lower. But the combined profits from two or three projects should outstrip the profit from a single project where equity wasn’t used. One of our valued long-term clients benefited from this approach recently on a project in Gipsy Hill, South London. Mackenzie Byrne sourced and structured debt and equity that covered 100% of project costs, allowing our client to build 9 new flats with a GDV of £5.8m and continue to take advantage of other opportunities. Want to learn more about what equity is, how it works, and why it can benefit your development business? Check out our recently published (and free) broker’s guide: https://lnkd.in/eCwZPkRr

Best Finance for Property Development in the UK: Top Options for Success Securing the right finance for property development in the UK is essential for transforming ambitious projects into profitable realities. From traditional bank loans to private financing, choosing the best funding can save time and costs, making the development process smoother and more efficient. This guide explores essential finance options for property development in the UK, helping developers at every stage. Key Finance Options for Property Development in the UK Traditional Bank Loans Traditional loans remain a popular choice for established developers. With competitive rates and structured terms, they offer reliable finance for property development in the UK. However, they may require substantial equity and have stringent criteria. Development Finance Tailored specifically for property projects, development finance in the UK is designed to cover construction and renovation costs. Funds are often released in phases, providing needed cash flow while minimizing upfront costs. Private Investor Funding Knowing how to find private investors for property development in the UK can open unique opportunities. Private investors often bring flexible terms and can reduce reliance on bank loans, ideal for new or small-scale developers. Bridging Loans Bridging loans provide fast access to finance for property development in the UK, especially for short-term needs. Although interest rates are higher, they are beneficial for projects requiring quick capital injection. For first-time or seasoned developers, selecting the right finance for property development in the UK involves comparing options carefully. Alpus Group can help you understand and secure the best finance solutions, ensuring your property development project achieves its goals successfully. Click Now: https://lnkd.in/e4qYpwmu #PropertyFinanceUK #PropertyDevelopment #FinanceOptions #UKRealEstate #PropertyInvestment #DevelopmentFinance #InvestingInProperty #RealEstateFunding #FinancialSuccess #UKPropertyMarket #DevelopmentLoans #WealthBuilding #PropertyDevelopmentUK #FundingOptions #InvestmentGrowth #RealEstateOpportunities #FinanceForSuccess #SmartInvesting #PropertyWealth #BuildingTheFuture

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Business #lending growth boosts private credit: the Australian economy remains resilient, with business credit growth reaching 7.7% over the year to August 31, according to data related from the Reserve Bank of Australia. Strong growth in business lending is attributed to significant infrastructure investments in housing, renewable energy, and transportation, as well as business upgrades post-pandemic. Vado Private Founder Simon Arraj is quoted in Australian Broker commenting on stable economic growth supporting the demand for credit from businesses. ➡ ➡ Read the article here: https://lnkd.in/gzAvQsR6 #vadoprivate #privatecredit #privatelender #credit #investing #smsf #propertyinvesting #yield #creditgrowth #income #incomeinvesting

If in doubt, give #lifesciences a shout? I’m sceptical about the location of a significant life sciences facility in Canary Wharf (although I’m sure far smarter people than me have considered this). That said, anything that can help rejuvenate Canary Wharf can only be a good thing. More importantly though, this proposal will encourage development of much needed housing stock in London. The scheme just needs to get the “affordable” balance right. Curious that the #QIA needed a UK government loan though… 😉 #realestate #realestatefinance #development #canarywharf #finance #loans #distresseddebt #specialsituations

𝐖𝐑𝐅 𝐒𝐞𝐜𝐮𝐫𝐞𝐬 𝐋𝐞𝐭𝐭𝐞𝐫 𝐨𝐟 𝐈𝐧𝐭𝐞𝐧𝐭 𝐟𝐨𝐫 𝐏𝐚𝐥𝐦 𝐒𝐩𝐫𝐢𝐧𝐠𝐬 𝟏𝟑𝟖-𝐔𝐧𝐢𝐭 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 We are excited to announce that Western Realty Finance (WRF) has secured a Letter of Intent (LOI) from a leading national private equity lender, providing both senior debt and PACE financing for a dynamic new Palm Springs 138-unit apartment development. This major financing package ensures the successful delivery of this market rate housing project. Financing: 💰 Senior Debt: $22 million for development and construction financing. 💡 PACE: $10 million in Energy-Efficiency materials financing. Source of Funds: Senior Debt: $22,000,000 PACE Financing: $10,000,000 Developer Equity: $8,500,000 Total Sources: $40,500,000 Use of Funds: Land Acquisition: $10,000,000 Hard Costs (Construction): $22,000,000 Soft Costs & Fees: $3,500,000 Interest Reserve & Contingency: $5,000,000 Total Uses: $40,500,000 Finished Stabilized Market Value: $55,000,000 Combined LTV: 58.2% Combined LTC: 79% Why This Matters: ✅ Strong Financing Structure: With $32 million in total debt financing, including $10 million in PACE, this project is fully funded for development, construction, and sustainability goals. ✅ Sustainability Focus: The PACE financing will allow the integration of energy-efficient systems, reducing the environmental impact and delivering long-term savings for the community. ✅ Community Growth: The addition of 138 new residential units to the Palm Springs area will support local housing needs and stimulate economic growth. 💰Let's talk about your next development project. ____________________________________ 𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐑𝐞𝐚𝐥𝐭𝐲 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 works closely with experienced residential developers to arrange financing from $5MM - $100MM, for solid for-sale and for-rent projects. For more information contact David Van Waldick 760-672-0146 / dave@wrfco.com, or James Carenza, 760-519-6189 / jim@wrfco.com. Or visit our web site: https://lnkd.in/gr5QfQF3 #ConstructionLoans #RealEstateFinance #LoanUnderwriting #Housing #RealEstateDevelopment Builders Capital Genesis Capital LLC Anchor Loans Trez Capital PACE Loan Group Greystone Lima One Capital Madison Realty Capital Encore Finance

𝐔𝐧𝐥𝐨𝐜𝐤𝐢𝐧𝐠 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐟𝐨𝐫 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐂𝐚𝐧𝐚𝐝𝐚 𝐒𝐦𝐚𝐥𝐥 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐏𝐫𝐨𝐠𝐫𝐚𝐦 (𝐂𝐒𝐁𝐅𝐏)   I've seen firsthand how challenging it can be for startups and new businesses to secure the financing they need to grow and thrive. That's why I'm excited to share how the Canada Small Business Financing Program (CSBFP) can be a game-changer for your business!   𝐖𝐡𝐲 𝐂𝐒𝐁𝐅𝐏?   🔹 Easier Access to Financing: The CSBFP helps small businesses obtain loans by sharing the risk with lenders, making it easier to get approved.   🔹 Flexible Uses: Whether you're looking to purchase or improve commercial property, buy new or used equipment, or make leasehold improvements, the CSBFP has you covered.   🔹 Substantial Loan Amounts: You can access up to $1.15 million in financing, with up to $500,000 available for leasehold improvements or equipment purchases, as well as up to $150,000 for operating line of credit.   🔹 Favorable Terms: With loan terms up to 10 years and competitive interest rates, this program offers a manageable repayment plan.   𝐇𝐨𝐰 𝐂𝐚𝐧 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬 𝐁𝐞𝐧𝐞𝐟𝐢𝐭?   1. Boost Your Growth: Use the funds to invest in critical assets that will drive your business forward. 2. Reduce Initial Costs: The government guarantee lowers the lender's risk, which can mean lower interest rates and fees for you. 3. Focus on Expansion: With the financing you need, you can concentrate on scaling your business and achieving your goals. If you're a startup or new business looking to take the next step, let's chat about how the CSBFP can help you unlock your full potential. Reach out to me at aherndier@ashdowncapital.ca or 604-512-6520.   Together, we can turn your business dreams into reality! 🚀   #StartupSuccess #SmallBusiness #FinancingSolutions #CSBFP #CommercialBroker #AshdownCapital

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🏗️ Exploring Alternatives to Construction Loans: A Guide for Builders and Entrepreneurs 🏠 As builders and entrepreneurs, securing financing for construction projects is crucial. While construction loans are a popular choice, there are viable alternatives worth considering to suit different financial needs and situations. 1️⃣ Home Equity Loan or Line of Credit: Utilize the equity in your existing property to finance construction projects. This option offers flexibility and potentially lower interest rates. 2️⃣ Personal Loans: Unsecured loans can provide quick access to funds without requiring collateral, although interest rates may be higher. 3️⃣ Cash Savings: If available, using cash reserves eliminates the need for borrowing and interest payments. 4️⃣ Crowdfunding: Platforms like Kickstarter can mobilize community support for smaller-scale projects with unique appeal. 5️⃣ Joint Ventures: Partner with investors to pool resources and share project risks and profits. 6️⃣ Government Grants or Loans: Explore opportunities for financial support through government programs tailored to specific project types. Each alternative has its pros and cons, so choosing the right one depends on your project's scale, timeline, and financial strategy. Remember, thorough research and consultation with financial experts are crucial steps to make informed decisions. Whether you're renovating a home, building anew, or undertaking commercial projects, understanding your financing options ensures smoother project execution and financial stability. 🔍 Interested in learning more about financing options for construction projects? Reach out to us at [Your Contact Information] for personalized guidance and support. Click Here: https://lnkd.in/g5u6pBZr #ConstructionFinance #BuildingProjects #Entrepreneurship #FinancialStrategies #RealEstateInvesting #BusinessDevelopment

Good morning. Here’s your daily round-up of the latest news and views from EG , all perfectly curated to set you up for the day ahead. There’s a notable pick up in refinancing deals in the market as the cost of debt starts to edge down. In Ireland, Hammerson has secured a €350m (£300m) refinance of its €570m facility on the 1.3m Dundrum town centre scheme. The new debt comes from Rothesay, BNP Paribas and Deka Immobilien and is topped up with €220m from Hammerson and its joint vetnture partner Allianz. In Birmingham, Richard Croft has come to the rescue of the Mailbox again, securing £90m of fresh debt to pay down the circa £100m Deutsche Bank wanted repaying. The 700,000 sq ft Birmingham icon had been put up for sale through JLL for £120m in November last year as a route to settle the debt, but the refinancing – with the bulk of the debt being provided by Leumi UK – means the sale process is now cancelled. The Mailbox was one of just three assets that Croft had sought to list through the now-defunct IPSX. The property is currently home to the BBC in Birmingham. The corporation had planned to move out of the building to new digs in Digbeth when its lease expires in 2026, but has since extended its stay. In Newcastle, EG can exclusively reveal that investor and developer Pioneer Group is close to be chosen for the next stage of the city’s £1.7bn life sciences development ambitions. The group, which recently teamed up with The Crown Estate Estate to form a long-term life sciences jv, is expected to be selected by Newcastle City Council to deliver the development and growth of the city’s health and life science commercial cluster over the next ten years. The opportunity was launched in May last year and comprises the expansion of the 90,057 sq ft bio-science centre, known as the Biosphere at Newcastle Helix, and three potential development plots on 1.7-acres of brownfield land. Elsewhere, there’s a host of fresh people moves across the sector. A rejig at CBRE has seen Rob Madden step up into a new role of head of UK leasing, in which he will be responsible for establishing and driving CBRE’s growth strategies to enable continued expansion of its leasing line of business across the UK, covering offices, industrial and retail. The RICS has appointed a new chair of its valuation committee, with Victor Olowe tasked with making the valuation process more responsive and independent. And London mayor Sadiq Khan has appointed a new chief executive and chair at the London Legacy Development Corporation, the Ministry of Housing, Communities and Local Government has launched a search for a chief executive of the Office for Place, tasked with helping to create attractive, sustainable and healthy spaces, and EG is on the hunt for a property strategy minister that we can put forward for the new Labour cabinet. All that and so much more in your EG MORNING NEWS ⬇ ⬇ ⬇ https://lnkd.in/eRUYn7WC