What Type Of Projects Do They Like To Fund!
- New builds
- Residential properties
- Commercial development
Joint venture finance can be used for property development for either major new building projects or comprehensive renovations. Think new housing estates, luxury homes, office blocks converted to flats, etc. It can also include residential, commercial and mixed-use property.
How Does It Work?
It all starts with the initial appraisal of the project.
- Complete the simple online application form. This form will be used by the investors to determine the value of their equity stake in the project.
- Within 3-4 hours you will be advised on the investors initial thoughts on your project. If they want to invest indicative terms will also be provided.
- If an offer is accepted the investors will then instigate the property purchase. The property will be purchased using a SPV company. It is normal at this stage for the investors to take full control of all the shares in the company. However, do not worry as a separate contractual agreement will be put in place which will ensure all your clients rights are protected.
- As the property developer you will now have the responsibility to develop and complete the property project. It’s in your interest to make sure the project is completed on time and to the required standard.
- Once the project is complete you will have the option to sell the units or refinance the project.
- Once the project has been completed you will repay the investors in full as per the terms agreed. The shares in the SPV will be transferred in full to you as the JVP.