CrowdProperty offers specialist development finance for small-to-medium (SME) development application (DA) approved property projects with speed, expertise, and certainty.
Property development finance and property development loans in property projects provide essential, specialist funding for the acquisition, construction, or renovation of property projects, overcoming capital shortages.
This type of development loan is instrumental during the construction phase of projects, enabling developers to commence and continue their developments without financial strain. It caters to needs for DA-approved projects, such as purchasing land, construction costs, and managing cash flow efficiently.
Development finance is a lifeline for developers, ensuring project continuity, reducing the risk of delays, and facilitating the successful completion of property development projects.
CrowdProperty's value proposition for DA-approved property investments is centred on providing streamlined, expert finance solutions. Our approach benefits SME developers by offering fast, certain funding for projects already holding DA approval, ensuring a quicker start to development. The meticulous due diligence process and first mortgage security provide confidence and safety to investors.
With a strong track record of successful project loans and returns, we provide a secure and market-leading platform for lending to SME property developers.
For all loans, we offer:
Streamlined application process
CrowdProperty offers a user-friendly application process, ensuring quick and efficient access to funds for property developers.
Expert due diligence and appraisal
Benefit from CrowdProperty's rigorous project appraisal by experienced property experts.
The process for obtaining development finance through CrowdProperty is distinctively straightforward and focused.
Initially, developers submit their project details online, which are then rigorously assessed for feasibility by a team of property experts. Unlike other property investment opportunities, which might have broader criteria, CrowdProperty specifically scrutinises projects for development potential, ensuring alignment with stringent standards.
Once approved, the project is listed for funding, often faster than traditional methods. This approach offers a more tailored and efficient route to funding, focusing on the unique needs of property development, from land acquisition to construction, thereby streamlining the investment journey for both developers and investors.
The application process at CrowdProperty is straightforward and user-friendly.
Prospective borrowers fill out a simple online form in less than five minutes.
They then discuss their project with a decision-maker at CrowdProperty.
If the project meets CrowdProperty's requirements, the borrower receives a decision-in-principle offer before the full due diligence process is run.
Finally, a credit-backed offer is made and agreed with the borrower.
The funding is then raised on the CrowdProperty platform from our community of investors.
Throughout the process, CrowdProperty's team of experts provides guidance and support.
What are the eligibility criteria for obtaining development finance?
To obtain development finance, applicants typically need to demonstrate a viable property project, a solid development plan, and a credible track record in property development. Financial stability, the project's profitability potential, and alignment with the lender's loan-to-value ratios are also crucial.
A clear exit strategy is often required to ensure loan repayment.
What are the key factors that lenders consider when approving development finance?
Lenders approving development finance consider several key factors:
They also assess the project's risk profile and market conditions to ensure a secure investment.
Can I use development finance for residential as well as commercial projects?
No, CrowdPropeprty only provides finance for residential development projects. However, we will review mixed-use projects where the commercial aspect of the project is up to 30% of the development.
What are the risks associated with development finance?