If you’re a property developer that’s keen to take advantage of our equity funding option, you’ll need to pick out the right project to be accepted. It might take a bit of work to discover a project that will capture the interest of investors but once you do, you stand to make a significant profit.
If you’ve got the ambition to turn around residential developments, there are several ways we can help you. For experienced developers, equity funding can help you scale up your plan. Investors understand that the housing market is lucrative and set to be even more so due to the housing crisis – put a viable, profitable development project in front of them and they’ll be eager to invest.
But how do you find your next project?
- Location is key – Investors want to back projects where they know there’s going to be demand for the developments and where historic sales prices show they can make a return. In the UK, London and the commuter belt around the capital comes out top. Other regional cities that are hubs for professionals, such as Bristol and Manchester, are good bets too.
- Develop efficient timelines – No investor wants to wait three years for their return only to find that the project is only halfway through. Your timelines need to be viable but also swift. Twelve to 36 months should be your standard project timeline where you want to attract outside investment – but don’t be tempted to be overly optimistic, keep your development goals realistic.
- Think big – Investors aim to make as much as a return as possible on projects. While a smaller development project might be appealing to you, the typical minimum equity ticket size is between £1.5 million and £2 million. You’ll need to show you have the skills and experience to handle projects on this scale too.
- Know the buyers market – If your development doesn’t appeal to buyers, you’re going to have a tough time selling. While London and other cities might be linked to soaring property prices, investors prefer to keep unit values below the £1 million mark, reaching a much greater audience.
Get in touch with use today to find out if your next property development vision would be suitable for equity funding.