I never thought I would become a millionaire – especially so easily and quickly.
Especially as a commercial property developer, which I had no experience of whatsoever.
In a period of just 12 months, we had managed to complete and sell our first-ever property development project. Here’s how I did it…
I was relatively young when I first took on my real estate development project.
With no experience in the property industry, I was very nervous to undergo the process – especially as I had to lend money to cover the building costs.
As a first-time property developer, I had a lot of concerns.
I had heard a lot of horror stories regarding hidden broker fees and how other land developers often ran out of money and were unable to complete their development projects.
But my brother and I had acquired this family-run garage in Southwark, London, which we had owned for ten years and had decided not to reopen.
Throughout the years, the garage had been neglected and fallen into a state of disrepair.
Rather than have it just sitting there, we thought it would be a good location to develop a commercial site that consisted of new terraced 3-bedroom properties.
So, we decided to bite the bullet and go for it.
Asking for help can be a difficult thing to do.
But if we wanted to make real money out of developing this dwelling then we needed a loan to finance it.
However, the tricky part was getting the banks to take a chance on us.
As first-time commercial developers and due to a lack of experience, no one wanted to take the risk – even high street lenders.
And after being knocked down twice, we were beginning to think that selling the garage was our only option.
But we did not want to miss the opportunity to make a substantial return from property developing.
That was until we began researching private lenders.
After the banks had turned us away, it was Hunter Finance we came to for financing options.
They assessed the project very quickly and had sent over a member of the team to assess the project and approved the loan within the same day, which helped us make the construction a reality.
At first, Hunter Finance provided an initial loan to pay off the charges the dwelling had already acquired.
For the entire project, a development finance loan of £680,000 was needed.
This was to cover the garage’s demolition and the construction costs, which meant we could start work immediately.
We were able to buy the materials, hire the builders and complete the entire project in just under a year.
Not only this, but all the terraced properties were sold in this time too.
The gross development value of the project was £2,235,000.
The loan-to-value ratio was 33%, which meant that we took home over one million pounds from this project.
We were very pleased with the results and how easy it was with Hunter Finance being involved.
It’s really changed our lives and has lead us to pursue more property development projects.
Hunter Finance offers loans between £100k to £2.5m to both small and large businesses, varying from residential to commercial projects.
For any further advice about planning consent, buying or selling land, or building developments in London visit Pre-application planning advice and planning performance agreements.
Deciding if development is right for you can be a difficult choice. And more often than not, individuals who own a piece of land quickly sell it on to developers without knowing their options. Yes, land is valuable, but you can yield larger profits if you develop a site yourself.
Hunter Finance lends to both big and small businesses, we’ve helped many first-time, inexperienced developers get their property off the ground and they are so much happier for doing it – some have even become millionaires in just under twelve months
Check our lending criteria to see if you’ll be able to start funding your next development project.
With no middlemen in the way and no broker fees, Hunter Finance is able to make faster and quicker decisions so you can progress with your project with no further delay, or missing out an opportunity to secure land. Our loan decisions take up to 48 hours and save our clients time and money.
If you would like to talk about getting your development project off the ground either call us on 01825 749721 or enquire with the button below…