17 – How to make sure your property development project is ‘bankable’

Ensuring your property development project is 'bankable' relies on lenders feeling confident that the development will be a success. Understanding how lenders assess your project goes a long way to helping you strongly position the deal from the earliest stages. Past guest and finance specialist Gayle Stapleton shares some tips and ideas about funding, lending and one thing you can do to ensure your deal stacks up from day one. Gayle is a former long-time bank executive who left the dark side and now runs her own finance business called Stapleton Pacific. Property Development Training If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site. The training includes a bonus program called Taking It To The Next Level for people who may want to go into developing full-time, along with another bonus course called Raising Capital which covers how to raise money for your projects. So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside... Property Developer Quiz Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at… Become a Million Dollar Property Developer Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory. In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way. Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development. This book has the answers for how you can make the leap into property development. Grab your copy now. Social Connection Property Developer Podcast Facebook – https://www.facebook.com/propertydeveloperpodcastProperty Developer Podcast Instagram – https://www.instagram.com/property_developer_podcast/Property Developer Podcast LinkedIn – https://www.linkedin.com/company/property-developer-podcast Types of property development funding In this chat we discuss the current lending landscape, take a deeper look at valuation and quantity surveyor reports, and cover some of the different types of debt and funding options out there, for example:- senior debt- junior debt or mezzanine finance- preferred equity- developer equity. It certainly is a moving feast when it comes to development finance with lenders changing their appetite and amending their selection criteria all the time. And I think that is why a finance specialist can really help you stay aware of where the lending market is at and how to obtain the best deal. Things to consider with real estate development finance Here’s a couple of things I took away from our chat. 1. Consider a higher cost of capital. You may need to start factoring in higher capital costs when doing your project feasibility. With major lenders tightening their lending parameters you may be forced to use a blend of different debt types and paying higher interest rates. And considering interest rates were above 7% and 8% not many years ago, paying those kind of rates should be viewed in the broader context of what you are trying to achieve with your developing. Do you want to get in and out faster,