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: 

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• Property Mastermind Website: https://www.propertymastermind.com.au/

It has been a pleasure and we look forward to seeing you in the future episodes!