Abstract:
Obtaining financing for property development is of fundamental importance to the development process. If the financing for a project cannot be secured, the project cannot continue. Property development is generally financed through a combination of owner’s equity capital and debt capital.
The methods for obtaining financing for property development are diverse.
However, with a larger part of property development normally being financed
through debt equity, lending institutions play a major role in the property
financing business. These lending institutions have a number of products available which are diverse and range from standard to customize and are complex in nature.
Lending institutions generally also have a standard process which they follow to obtain the information required to approve the debt capital needed by the property developer. This is a process developers sometimes have little
understanding about and consumes a large amount of resources.
