In this episode Mark has an in-depth discussion with Dean Brown MD of Aureum Finance about the best way to fund a project. They explore the current diverse and wide-ranging funding options available and Dean offers advice on how to approach the finance market, an overview of the current deals available and how they can be tailored through to meet your finance requirements.

KEY TAKE AWAYS

• There are huge benefits to using a brokerage service as having the quotations researched and presented saves time. To have the summaries and then be able to make an informed choice is beneficial or lots of levels.

• The market is very diverse currently and this can make it a challenge to know what the good deals are out there are.

• Most lending is from challenge lenders and alternative banks who have come into the market with specialist teams. This has provided a good opportunities to borrow

• Most of these organisations are happy to lend between 80 and 90% whereas clearing banks usually lend around 60%. Specialist development lenders are doing a lot of business

• Standard investment finance cost comes down to loan to value against rental income so if you’ve got high yielding property with good income then you can borrow more.
For a longer-term hold there are investors out there typically with rates of 2 – 5 % currently.

• If you are looking for investment for a project. Put together a good presentation, have a team around you and a good track record to provide comfort for the investors.

• Cost of the finance always comes down to what you want to borrow

• First question asked is what do you need? and how much equity have you got to put in to this project this helps to steer the project to the right lenders at the right cost

• Aiming for between 60 65% GDP is the most competitive space right now in terms of lenders with rates of 6 -7 % in this sweet spot.

• If you don’t have lots of experience partnering with someone with more experience can help in several ways

• Lending rates are likely to be more favourable
• You will learn lots working alongside someone with experience

 

BEST MOMENTS

“Most people look at what the annual return is but it’s important to know the overall return”

“Can I borrow all the money for my project? Yes, you can but it’s not always easy”

“Specialist development lenders are doing a lot of business”

There lots of money available”

“If you’ve got a requirement you can usually find a home for it”

ABOUT THE GUEST

Dean Brown

Dean Brown is managing Director of Aureum Finance a Property & Finance specialist which provides assistance raising capital for all types of property transaction. ... Real Estate & Project Financing: Private Equity, Investment Banking, Structured Finance.

http://www.aureumfinance.co.uk/

ABOUT THE HOST
Mark Homer
Mark Homer is an entrepreneur investor. He has worked with investment since he was 15 years old using the laws of wealth! He is a spreadsheet analyst with an impressive following from major publications including BBC Radio, The Wall Street Journal, The Independent, as well as co-authoring the UK’s best selling property books. Mark has always looked for the best investment vehicle, and at the end of 2007 with Rob Moore the co-founder of Progressive Property his joint portfolio produced more profit than any of the other investments he’d tried in the last ten years, combined.
Contact Method
Facebook – Property soldier
Email – [email protected]
Email: [email protected]
LinkedIn: https://www.linkedin.com/in/markhomer1
Facebook: https://www.facebook.com/markprogressive
Twitter: https://twitter.com/markprogressive

 

 

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