Funding Partners
One of the main ingredients to a successful real estate project is funding. Funding is critical to the stages of acquisition and development of the asset, and where banks have proven restrictive due to unfavorable lending policies, we have welcomed the participation of Funding Partners.
Funding Partners are primarily people who have money to invest and seek a higher return by placing their funds in a real estate project until it is completed. Depending on the stage invested, time frames are typically 12 to 24 months. The funds are secured against the property and risk is essentially mitigated through detailed planning, organised structuring, pre-sales or leasing commitments, and management to completion.
Upon completion, Funding Partners receive their original investment plus interest or a percentage of the profit, depending on how the funding was applied and the type of project structure. The opportunity to reinvest on future projects can be advantageous as the Funding Partner obtains higher returns on their money with a fuller understanding of the whole process.
If you have a strong appetite for real estate and wish to invest capital for a secure return, ask us about our capital placement program for future projects including; small subdivisions, townhouse projects, commercial property investments and renovation projects.
We understand that success is very much a team effort and are happy to engage private capital rather than bank debt if it suits the project. All funding is secured by a proportional amount of ownership in the project until completion, in the same way a bank would be secured. Investors funds are secured on a first or second mortgage basis depending on the particular project. A project may also be structured using any one of the following arrangements:
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- Joint Venture
- Master lease or option
- Unit trust structure
- Direct Equity Participation
Funding example;
No.71 – Duplex Development – Brisbane
Summary (example): Duplex development, each unit architect designed on 2 levels, 3 brms, 2 bath, 2 car garage, extra storage, walk to shopping centre, schools and employment base.
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- Expiry Date: Example Only
- Demographic: Cosmopolitan, executive couples & singles
- Completed Value: $1,100,000
- Available Properties: One (1)
- Opportunity: Buy at wholesale price of $420,000
- Structure: Direct equity participation
If you would like to know more about current and future capital placement opportunities, use the form below to submit your questions so we can get back to you promptly.
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