EP 157: How You Can Finance A Property Development

Finance for property development can be a complex and confusing topic for many property developers or investors. It’s important to understand the differences between property developing and property investing when it comes to finance. There is one common question that property investors often have: How can they finance a property development when they have limited serviceability but sufficient equity?

Many people who are new to property development may not fully understand how finance works in this context. They may be familiar with obtaining loans for their primary residence or investment properties, where serviceability is a key factor in determining loan approval. Serviceability refers to the borrower’s ability to repay the loan, typically demonstrated through income verification and financial statements.

In this week’s episode, Hilary and Bob discuss how you can finance a property development. They highlight the common confusion between property developing and property investing when it comes to finance. They also share insights and tips to help property investors navigate the complexities of financing property development successfully. So if you feel confused about the difference between property development and investing when it comes to finance, you won’t want to miss this week’s episode!

Resources:

To learn more about our Joint Ventures Workshop we have coming up, please click here: https://www.propertymastermind.com.au/joint-ventures-workshop/

Or to speak with us directly, click here: https://www.propertymastermind.com.au/schedule-an-appointment/

Episode Highlights:

Common Confusion: Property Development vs. Property Investing [01:56]

Understanding Retail vs. Commercial Finance [03:37]

Tapped Out Investors and Serviceability Issues [05:54]

Equity and Serviceability in Property Development [08:18]

Capitalized Interest in Commercial Loans [10:04]

Accessing Equity in Principal Place of Residence (PPR) [12:00]

Using Unencumbered Property as Equity [14:25]

Using Investment Properties as Equity [17:01]

Joint Venture Workshop Announcement [19:13]

Advice for Aspiring Property Developers [22:00]

Encouragement and Final Thoughts [26:07]

About Hilary Saxton:

Hilary Saxton is a performance and mindset strategist who motivates, trains, and coaches people who crave knowledge and success in their property and business life. Hilary has had a varied career in property and business spanning at around more than 25 years now. She takes an honest, upfront approach towards both people and process issues. Hilary provides solutions through incremental and transformational change that delivers the success her clients both want and need.

About Bob Andersen:

Bob Andersen (known in the property industry as “The Deal Maker”) is a Property enigma. When it comes to creating financial freedom for his followers, his “thinking” is refreshingly simple. He has the ability to make the seemingly complicated, uncomplicated. Bob has changed the lives of so many people by training them to use property development as a vehicle to build substantial cashflow and long term wealth. This in turn, has given them control over their lives and a lifestyle they could previously only dream about. It has been said that Bob has created more property millionaires in Australia than any other educator / mentee out there through his highly acclaimed property development courses. Thank goodness for Bob! Because there are way too many so-called Property education experts out there. Several, even past students, have ‘borrowed’ Bob’s material in an attempt to ‘be Bob’. As Bob says, “I must have done something right, but you can’t ‘borrow’ over 35 years of experience and over $1 billion worth of projects spread across all states of Australia and in all stages of the property cycle”.

More Resources:

To contact us about our investment opportunity, please email admin@propertymastermind.com.au or phone 1300 729 550
If you’re interested in winning a free copy of the book “Secrets of Property Millionaires Exposed”, go ahead and leave a comment or send me an email. We’d love to hear from you!
If you liked this episode, or have any comments and/or suggestions on how we can make this better, don’t hesitate to send us an email. For questions/things you’d like us to cover and discuss in this podcast, again, you can send an email at hilary@propertymastermind.com.au
If you’re interested in receiving a free copy of the book “Secrets of Property Millionaires Exposed”, send an email to hilary@propertymastermind.com.au!
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It has been a pleasure and we look forward to seeing you in the future episodes!

Ep. 175: How Assumptions Can Cost You Money In Property Development

In this week’s episode, Hilary and Bob discuss how assumptions can cost you money in property development. They dive into the potential pitfalls of making assumptions and how it can lead to significant problems if due diligence is overlooked. They also emphasise the importance of thorough follow-up and critical thinking in property dealings and interpersonal interactions. Tune in and learn from real-life mistakes and how to avoid those costly pitfalls!

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Ep. 174 – How Much Money Can You Realistically Make In Property Development

In this week’s episode, Hilary and Bob dive into the question: how much money can you realistically make in property development. They discuss various types of projects, the impact of location, and the importance of understanding profit margins. They also highlight the differences between duplexes, townhouses, and larger developments, as well as strategies for maximising profits through effective financing and investment approaches.

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Ep. 173: From the NRL To Property Developer (with Gary Martine)

In this week’s episode, Hilary and Bob talk with a previous mentoring student Gary Martine. Gary shared insights from his diverse journey and emphasised the importance of relationships in achieving success. Also highlighting how these connections have played a crucial role in both Bob and Gary’s life.

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Kind Words From Our Students

Peter O’Meara

"It was very up to date and concise."

I found the course to be of great benefit to me…. taught me many aspects of developing that I had not considered. It was very up to date and concise.

Robyn Wawn

"From Bob’s training, I learned there is more than one way to skin the property development cat."

From Bob’s training, I learned there is more than one way to skin the property development cat. I purchased my property with no money and leveraged off creative ways to finance its development and to take it in stages to reach its full potential. I am also team-building with the right professionals to delegate to who provide value for money to get the project underway and stay on track.