There are many people involved in property development these days. It is an exciting career to get into and there are a variety of methods to manage and fund such projects. But property developers will know all too well there are many difficult decisions to be made along the way. There are a number of factors to consider to reduce the chances of making a rash and incorrect decision when it comes to financing.
Often there are large sums of money involved, so due care and diligence should be applied when applying for funding for property development. Learning “on the job” often means mistakes will be made and you’ll learn from them. But you can still lose plenty of money as you make these errors. So, are there ways to reduce property development funding oversights? Sure there are; and the first approach to a project of this size is to do a bit of research.
Research means thoroughly understanding the development. The area you build on means something. Questions need to be asked, research on the locale has to be done and calculating the average price of a home within that postcode is key. Once you have a more accurate concept of the area and its potential, the problems you would normally get later down the line of the project will diminish.
Planning Permission is Vital
Getting planning permission is the first thing you must do after the local area has been researched. The first point of contact for this is the local council. Do not expect an instant decision and gaining a planning building permit can take a long time. The process has to be submitted in the local papers, neighbours that may be affected and the highways council.
Property Development Funding is available to begin before the planning permission is completed, but this will all be a waste of time, effort and money if the permission is not granted.
Experience Goes a Long Way
Gaining experience in property development is always a huge plus point when seeking funding for the next project. A lender loves to look at a portfolio of several previous housing developments that you have successfully built and sold. Assuming you are not a beginner, it is a smart move to get a CV or portfolio produced that you can show lenders. It will also allow you a chance to get competitive rates and quotes.