Property developers - How do you raise finance?

[unclemark123]

I have a small portfolio of 3 flats and my current house. I have a little equity in the flats,and my house. I have a few £££s and seeing as i am experianced in renovating I fancy getting a little more serious at it (all of my previous renovations I have lived in under residential mortgages). I plan to remain in my current home and treat a renovation solely as a business venture. How do you guys finance your purchases? I have the practical side of things all covered but the financial side is my weak point. I know how to do all the sums to see what potential profit is in a property, it's just raising the cash.

[Sarnie]

http://www.buildstore.co.uk/finance/

[Lawrence5]

Consider the tax.... Capital gains if doing it on the side if it becomes your main income then it could end up stock in trade as builders. Principle private residence.... No tax

[z4chris99]

Personally we use resi mortgages and then equity to refurb

at work we use the banks for development finance, £250m was the last one.

[dafydd2008]

z4chris99 said:

Personally we use resi mortgages and then equity to refurb

at work we use the banks for development finance, £250m was the last one.

Chris,

Do you mind if i ask who you work for?

[traxx]

Around where I live increasingly the developers are going to local individuals to raise money - be it finance/mez or equity - as its just easier and a better deal than going to a bank

[pods]

Here is the best deal I have if it is of interest shout.
Doing deals on everything from Hotels,nursing homes to jets (YES PLURAL)
Hardest thing is getting the cash collateral.
Good luck.....Kenny

Development Finance.
100% from finance
15% cash collateral from client(developer)
ie 6 to 1 gearing
Interest at 5.5% per annum paid monthly in arrears, base rate fluctuations do not affect this figure, ie it is fixed.
Ist charge over building
£3,000,000 minimum (largest project is coming in at £485m so far)
Extended term up to 15 years interest only bullet payment can be agreed
Clifford Chance are the UK SOLICITORS
Top 25 BANKS using platform trading
No exit fees
4%Fees to be added can be added.
Takes roughly 100 days from start to drawdown