A medium to large scale residential development, such as high rise apartment provides the ability to maximize the investment profits deriving from one block of land.
On the other hand, if you require access to capital for your next residential property development, being able to identify the most appropriate loan can be a tricky and at times a difficult process.
How to apply for a residential property development loan
The bank requires to assess two main factors before approving your development loan application: your development plans and your financial situation.
Development plans
Prior to providing finance for a development, the bank will need to determine whether your planned project is viable and has the ability to become profitable. To demonstrate it is, you are going to be able to conduct a property development business plan. This needs to consist of:
- The funds available for the project
- Emergency source of funds to cover costs if unexpected expenses occur
- Experience in development of that kind of projects
- The builder’s experience and skills
- A location and zoning of the property
- A design objective for the project
- A satisfactory timeline for construction
- The sum of predicted cost of the project
- A plan for the future properties after completion. A notable example consists of the manner you plan to sell the properties
This is a crucial document and requires to be as detailed and professional as possible. If essential, you may consider hiring the services of a specialist firm to assist you packaging a property development business plan.
Ask Sillicon Capital how we can assist you with your project development business plan.
