Submitting a property development funding proposal either to bank or prespective investors isn’t an easy task, expecially in the current climate. Having a thorough, finacially viable developemnt proposal can increase the chances of obtaining funds for the project. This is particulary important for prespective lenders and investors, who typically base their approval on your project’s gross realisation.

So the following summary describes the pivotal points in your proposal that you should nail to impress the lenders and investors alike.

Give in-depth information about the proposed type of development

Whether you’re planning to subdivide land, build aparatments or townhouse, or invest in specialised security property, this will impact how the lenders view your proposal. They’ll want to know solid details that can help them assess your project’s gross realisation.

How many apartments or townhouses are you proposing to construct? What are the sizes of the newly subdivided land? What type of specialised security property are you pitching to? It may help to include any photos or graphics that gives investors a mental picture of your project.

Provide Insights into the project’s location

Providing in-depth details of your property’s location helps to support your case for developing in the area. Is the development in a metro or regional area? This can play a big role in determinng whether your project is potentially fundable.

Consider adding any evidence that supports the feasibility of your project, inlcuding:

• Zoning maps
• An economic profile of the area (including noteworthy employers)
• Long-term population trends
• The proximaty to public transaport routes
• Surrounding business and residential hubs

Demonstrate that your projects costings are realistic

Most in-depth proposal includes a financial analysis, in which you demonstrate your understanding of the costs required to complete the project. Since developers are prone to underestimate expenses, lenders will be checking to ensure the costs are realistic.

Your cost breakdown should incorporate such expenses as:

• Land acquisitation
• Taxes, including GST
• Permits, approvals and other council contributions
• Sitework and construction
• Legal work
• Consultants – including property lawayers, architects, designers, engineers,cost estimators, quantity surveyors, etc
• Insurances
• Property management
• Sales and marketing