Have you built up your property portfolio but not been able to progress to the next stage? It can be tough moving onto new and exciting larger-scale development. These challenges almost always stem from the need for different financing options. I have come across this problem throughout my career and now realise that master brokers are invaluable to achieving this jump.
Master brokers have all the necessary experience when it comes to more complex borrowing requirements. Let us say we have something more commercial – a block of offices, for example. A master broker can go through all the viable options related to this strategy, ensuring you are aware of all the options relevant to your next development project.
Despite the stigma attached to it, bridging finance can be useful in making the step up. Some people get hung up on the issues surrounding interest rates; but, with your situation, it may be the best option available at the time.
Another option is portfolio finance. Unlike bridging, portfolio finance is a long-term loan offered to investors with multiple rental properties. The loan is calculated based on the investor’s rental income.
Other financial products can include commercial mortgages, property development finance, auction finance and mezzanine finance. These options cover both short-term and long-term assistance. They also take into account additional factors such as your current portfolio, the proposed rate at which you will pay it all back and whether it is a new or refurbished project, as well as other checks.
Top Tip: Need a quick bridging loan? Consider the two most important components: valuation and lawyers. If you have the right contacts already, then you are in luck. Having a valuer who can go out and get a report back in a short time scale is key. The same is the case with a lawyer. A free-flowing team is therefore highly recommended.
The range of developments which are covered by these financial products is fairly extensive. The list includes the already mentioned commercial offices, but also on there are holiday lets, industrial or retail units, and many other complex commercial premises. One particular lender may cover land developments, whereas another may not. One may cover HMOs and hotels, whereas another may do HMOs and public houses. Finding the right one for you will take good, sometimes extensive, research.
This is where the master broker comes in.
They will be able to take whatever your development is and give you the options which are best suited to it at the time, including the different rates offered by the various lenders. Not having a master broker in this scenario would provide some difficulty for yourself in navigating all the challenges of acquiring the right finance. You should never put yourself in this position with larger developments.
Top Tip: Watch this video to gain more advice and a better insight into financing these types of developments. Listening to master brokers and doing more research into the subject will give you a better understanding overall. Make sure you are clued up and completely ready before going into any sort of large scale development.
So, why not take that first step? Contact a master broker to see how they can use their expertise to your advantage. I have had the pleasure of working with the same master brokers on many-a-project and cannot recommend them highly enough. Without them, I would be lost. So you should definitely give one a call today as they can be the critical piece to your success.
Don’t know where to start? I can offer you support with my mentoring advice and put you in touch with one of my professional contacts today! Also, be sure to subscribe to my YouTube Channel for more exciting and engaging content on all things property.