Secured Lending for Property Developers projects

[Mezger]

I have no desire nor skill to do Property Development, but keen to understand those that lend (secured) to Property Developers.

Does anyone here provide finance to Developers via Bridging loans?
How does it work in practice, what rates are achievable, how do you 'secure' your loan - via first charge?

Keen to hear from those with real world & recent experience.

I have some funds I am able to invest but only for 18-24mths - so too short a timeframe to pile into Index Funds (my first port of call)..

Thanks in advance!

[Mezger]

Thank you, sounds like sensible advice.

Based on your experience, whilst timelines might get extended, have the returns been worth it?

[Mezger]

blueg33 said:

How much have you got to invest? I have a project with a clear 2 year payback.

I need £5m. Yield will be circa 8% based on a land turn prior to comment of construction. If it goes wrong, you own a field.

400-600k, I've always wanted to own a field ;-)

This may sound naive but 8% yield feels low given where interest rates are, I'm (assuming) commercial lending rates are above UK base rate?