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Follow on Google News | Creative financing opportunities for developersFinancing for construction is deemed almost impossible by professional property developers, and the continued economic difficulties in the market have exasperated the situation. However, there are many unique opportunities open to developers.
By: Millionaire Investments press room At Millionaire Investments we ally ourselves to many professional financiers, and seen an abundance of financing opportunities available. One most recent opportunity and still live today is a funding mechanism that gives a real opportunity, and is very low cost to implement. This involves borrowing twice as much as your requirement. You take half of the borrowing, but pay the interest on the total, which is normally around 2.5%. A trader then trades on the other half for a period of ten years, and is responsible for paying back the capital. The developer is responsible for interest payments only, and apart from a €30,000 fee, and the ability to 'show some skin', the development can borrow the required amount of funding for his/her project. Fees are high, but with no capital to repay, this works out as a very cheap loan, even in comparison to a low interest rate loan direct from a high street or recognised banking institution. We have a number of developers taking this route, and the risk is €30k, but not before the principal company has given an outline approval of the project. This is probably one of the cheapest and most effective methods of construction finance, and world-wide locations are considered. This type of funding mechanism is now becoming more regular, and through innovative and constructive methodology, high quality development opportunities have the ability to get off the ground. So if you are a developer and looking for construction financing, this and many other schemes are typical of what is available today. For more information on construction financing http://www.millionaire- # # # www.millionaire- End
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