So how do you fit into this mix?
In essence, you lend your money or security to a Property Developer for a small scale Property Project for an agreed upon return. They already have their loans arranged for the majority of the Project, they just require the cash or security for the other bits and pieces most lenders don’t lend on but a Project can’t be successful without like:
- Deposits for loans
- Stamp Duty
- Settlement Fees and Charges
- Land Development funds
- Initial contractor fees
As the amounts they require aren’t a large portion of the total development cost and the funds are only needed for months at a time, they offer high interest rates and security to back it.