Challenges For Low Cost Buider Developers & Development Funding

Video Transcrit.

one of the main challenges that we see for Builder developers that are in the marketplace is that some Builders can build at such a low cost compared to other builders that they can make certain projects work that otherwisewouldn't be feasible for other Builderdevelopers.

Validation of QS for You and other Builders

However whilst this is actually a positive thing that they can build at such a low cost and make the project work for them they're often faced with a very big challenge and that challenge is funding because ultimately any lender whether it be a bank or a private lender is going to ask for a QS to be done and in some cases they may get another Builder to quote the job and fundamentally if the feasibility doesn't stack up for these other parties they won't provide the funding.

Ensure feasability stacks up for yourself and third parties

And we've seen firsthand we Builder developers have bought sites it was feasible for them but were then unable to get funding through traditional or non-traditional routes and ultimately what they've had to do is they've had to borrow money from friends and family to do the job or they've had to borrow money at a very high cost and so one of the key things that we recommend to builder developers is that they should get an external party to quote the job or do a Qs to know that the Project's still feasible for someone else. Because the project feasibility is ultimately going to determine whether you can get funding and more importantly the resale value of that land with or without permits should you get stuck.

To learn more about property development funding click here