56 | BUSINESS Finance guide WORDS | Bill Clover
www.opp.org.uk | JUNE 2010
How to fi nd the money
Bill Clover, president of Panorama International, gives an insider’s view of how best to conquer the challenges of successful property fi nancing today. If you prepare properly there is plenty of smart money out there looking for a good scheme to invest in he says.
always a solution for fi nancing today’s developments. All you have to do is look carefully in the right places and you will fi nd that there is plenty of smart money around.
T
The problem is that many of us in the international property sector do not like the terms available.
Although most lenders have a different approach to today’s market, all lenders have basic principles and understanding these will better enable the developer to think through the most successful fi nancing plan for his development. I would like to lay out a few simple
“ground rules” to follow to make sure that your fi rst steps to getting the money in place don’t go wrong:
• Market must be proven to exist for every product.
• For residential developments this may include a heavier pre-sales component or guarantee than in previous years.
• For hotels and other components the market must be clearly shown to exist
• Support from established brand names and highly regarded experts is useful.
• A more substantial equity than previously experienced is necessary.
• Quasi or substitute equity can be utilised in the capital committed.
• Guarantees can be used, or third party endorsements can be utilised to enhance the desirability of the loan.
• There are many methods developed by Panorama to raise equity or quasi equity. Develop your own set of how equity funds can be secured.
he money is out there … it is defi nitely available! Contrary to popular opinion, there is
BUSINESS
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