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!
- Or Subscribe and give us some great feedback on YouTube: https://www.youtube.com/channel/UCt31KlQu9azoojEHPLvXgmA
Connect with Property Mastermind:
- Property Mastermind Facebook: https://www.facebook.com/PropertyMastermind
- Property Developer Secrets and Hacks Facebook group: https://www.facebook.com/groups/2581187315284341
- Hilary Saxton Facebook: https://www.facebook.com/HilarySaxtonCoach
- Instagram: https://www.instagram.com/propertymastermind/
- YouTube: https://www.youtube.com/channel/UCt31KlQu9azoojEHPLvXgmA
- Property Mastermind Website: https://www.propertymastermind.com.au/
It has been a pleasure and we look forward to seeing you in the future episodes!
You May Also Like...
Ep. 171 – Property Development Workshop Takeaways
Ep. 170 – How to Find a Property Development Site
Ep. 169 – Liam’s Journey From The Army To Property Development
Kind Words From Our Students
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.
Gary Sherdon
"I would have no hesitation in recommending this course and have done so on many occasions."
I would like to thank Bob and Hilary for the opportunity to participate in The Property Accelerator. I enjoyed the learning experience both online and in person. This has allowed me to implement knowledge and given me confidence to pursue Property development. In this time I have committed to two duplexes and am currently working on a splitter. The splitter involves a boundary realignment plus renovation and then construction of a second dwelling. This is being done in a JV arrangement (another of Bob’s strategies). I would have no hesitation in recommending this course and have done so on many occasions.
Alistaire Baker
"Thank you, Bob!"
I have enjoyed going through the content and in particular the bits about creative finance and structuring deals. Thank you, Bob!
AS SEEN IN
Ready to Learn More About Property Development?
BE MENTORED BY US
