100% Joint Venture Funding for Property Development Projects
JV finance is used for developing property without having to use your own funds as a lender can provide the finance for the purchase of the land as well as fund the entire construction costs.
In return, the lender will be looking for a 50/50 split on profits and charge approx. 1% interest per month.
However, this is a very specialist product only available to property developers and projects that meet a JV lenders’ strict criteria such as:
- A certain level of experience in development is required. Therefore this isn’t an option available to 1st time developers
- Minimum of 25% margin on GDV (pre finance cost), ideally over 30% to ensure everyone makes a return
- Requires full planning in place as no lender would take on any planning risk
- Available for the development of affordable housing, but not luxury homes