Property development finance can be complex, but private lenders offer flexible solutions. Here's how to maximize your chances of approval.
1. Have a Detailed Project Plan
Lenders want to see complete plans, approvals, timelines, and budgets. The more detailed, the better.
2. Demonstrate Experience
Previous development experience significantly strengthens your application. If you're new, consider partnering with an experienced developer.
3. Prepare Realistic Budgets
Include contingencies (typically 10-15%) and be conservative with timelines and costs.
4. Secure Key Approvals First
Development approvals, building permits, and council approvals before applying shows the project is viable.
5. Have Presales (If Possible)
While not always required by private lenders, presales demonstrate market demand and reduce lender risk.
6. Understand Your Numbers
Know your end value, costs, profit margins, and loan-to-value ratios cold. Lenders will test your knowledge.
7. Provide Quality Valuations
Get professional valuations from qualified valuers. "As is" and "upon completion" valuations are typically required.
8. Show Your Exit Strategy
How will you repay? Sale of completed units? Refinance? Be clear and realistic.
9. Contribute Equity
Most lenders require 20-30% equity contribution. This shows commitment and reduces their risk.
10. Work with Experienced Advisors
Use experienced lawyers, accountants, and brokers who understand development finance.
Ready to finance your development project? Apply now.