How to get successful development funding with a mezzanine lender
TIP NUMBER 1 - BE HONEST
Be Honest. Most lenders have been in this market a long time and there are not many things they haven’t seen. Every deal is going to have its own quirks and they understand this so it’s better to show the lender everything – the more transparent, the better.
TIP NUMBER 2 - KNOW YOUR NUMBERS
Know your numbers. Know your build costs inside out and know your gross development value on exit, either the single unit or multiple units across a site.
TIP NUMBER 3 - LOCATION
Location Location Location. Understand your local market. The most successful developers we’ve worked with have always understood their local market and they can repeat and sell products to this market consistently.
TIP NUMBER 4 - INFORMATION
Information is key. Have all your information ready and be able to provide everything to your lender in one go. This includes your track record, local comparables and anything else the lender requires. We hope these tips help you secure funding!