Vida Property Solutions

🤯“There’s no way you can seriously get 90-100% funding!?”
“How can you get that MUCH?”

Well let me tell you…..

I get asked this on a weekly if not daily basis so thought I would do a little Q&A summary ⁉️

❓How can you lend 90-100% of the total costs?

💡We specialise in structured development finance

SO WHAT IS THAT I HEAR YOU ASK?…..

❓What is structured development finance?

💡 Structured finance is where more than one lender is combined to produce higher LTGDV lending then would normally be achieved using a first charge lender

❓So how is this better than any other lending?

💡This enables us to deliver 90-100% of the total costs of a development whereas regular development finance will only provide 60-70% of the total costs.

❓Can you also do this for bridging loans?

💡Yes!!!

We are also able to provide structured bridging loans using the same principal.

This is very helpful for those really urgent projects!

So……

⚠️ Do you need 90-100% funding for your next development project?

💫 Top 5 questions we get asked ALL the time…
What questions do you have about Development sites or Funding?….
Leave your question in the comments or send me a DM 💬

❤️

💫 £28m of projects to close this week 💪 💫

We’ve got a big week ahead of us lined up:...

🔹 Start refinance process of one of my own recent HMO projects

🔹 Try and push through Planning Permission of a large housing development

🔹 Site visits at some current renovation projects

💫 Not to mention completing the funding of £28m for some of our clients projects…

This is for separate developments of 24 houses & 53 apartments 🏘️ 🏢

Both of which the developers cannot wait to start building 💪

What projects are you wanting to move forward this week?

Throwback Thursday & a little behind the scenes photos of a recent project with a purpose built disabled access bungalow 📷…

As part of the co-living strategy in this particular area we strongly wanted to ensure that disabled access facilities were included. This was something that we could see was lacking in this location and within the co-living strategy for the area. Therefore we purpose built a 2 bedroom all ensuite disabled access bungalow.

You will see that originally there was an old Garage and part of the main building which was attached to the garage was an old smelly store room 🤢

We knocked this down to create a large open outside communal area & gained planning permission to build a 2 bedroom ensuite bungalow alongside the 12 bed student HMO 🏠.

Now we have a beautiful disabled access bungalow with all the mod cons - built in Sonos speakers, private ensuites, disabled access kitchen with adjustable worktop heights 😃.

The bungalow is fully let with with very happy students - especially with their built in Sonos speakers 🎶

BUT WHAT DO YOU DO?….
I've done a little post to give a quick overview to answer this as I see this is usually a question that can get overlooked by people posting on social media and sometimes never answered so here goes…

🔹WHAT WE DO:
We arrange funding for property developers typically between 90 - 100% of the total costs (land acquisition, construction costs & professional fees).
Alongside this we provide advice and guidance to developers both large and small on all aspects of development finance and project management from pre site purchase through to practical completion and exit .

🔹 WHY:
We have over 20 years experience in business advisory and construction with over 15 years experience in the property lending market . We offer access to a wide range of property development finance lenders and private institutions who cover all levels of funding requirements .
We also provide access to our own institutional private equity fund exclusively for developers .

🔹WHERE:
England, Scotland and Wales

🔹WHAT WE SPECIALISE IN:
Structured finance solutions and construction advice

🔹WHAT SETS US APART FROM OTHERS:

➖ We provide a complete end to end consultancy service for developers.

➖This is from arranging structured development finance to facilitate up to 100% of the site acquisition and developments costs.

➖ Credit paper preparation for the finance application with the appropriate Senior, mezzanine and institutional equity lenders.

➖Assistance with the professional team structure, legals, collateral warranties, consultant appointments, including your EA and JCT build contract.

➖Guidance with your construction sum analysis, construction cost breakdown, cash flows, pre - commencement conditions, and all aspects that will be required through to legal completion, prelims breaking ground and beyond .

🔹 HOW CAN WE HELP:
We help developers who wish to grow but who struggle to finance acquisitions because of a lack of working capital and equity which is restricting their ambitions and future growth plans

Lets get reintroduced!

What do you do? 😃

Let people know in the comments below ⬇️

“The less obvious but most relevant benefit to our client saving £800k”…⚠️

I’ve been talking recently about the benefits of MMC (Modern Methods of Construction) in particular light weight steel construction.

These particular benefits include:

1. The cost savings that can be derived from using it as your superstructure

2. The speed of assembly and delivery

Another benefit that may be less obvious but actually could be the most relevant…

Buyers are more likely to engage early and reserve plots! 🙌😃

This is because it’s far easier for a Buyer to assess what the home is going to look like when the frame and roof is in front of them rather than just CGI photos or a basic foundation and land to stare at.

This occurred on the very site with the video I shared recently and these photos.

Just last week as the roof assembly was taking place 2 buyers who had seen the CGI’s came to site and reserved the final 2 plots there and then on the spot.

The developers have now sold all units well before completion which puts them in a fantastic position going forward

✅ Happy Clients
✅ Happy Developers
✅ Happy Lenders
✅ Happy customers

🔹 Utility rooms 🔹

What do you think to our funky new utility room at one of our recent projects?

This is part of a large commercial conversion we have recently completed turning an empty old run down shop into a 14 bed HMO.

The HMO is for students so we wanted to create something funky and large enough for everyone to have enough washing machines for everyone to use. Swipe 👉 to see the little details.

This way they won’t have any excuse to keep taking their washing home for their parents to do 😂

This is the first time iv’e ever heard students say that they love the utility room!

“What’s the right level of contingency I should be using?”

With the current increase in cost of construction materials, I frequently get asked this question and how this can be managed.

This is certainly something Lenders are aware of and are increasingly looking for higher amounts of contingency to be included in the construction costs.

To balance this, there are 2 available options:

1. Your project may have enough profit in the deal to be able to absorb this increase in contingency.

2. You could look at MMC (Modern Methods of Construction) to increase profitability and offset rising material costs enabling the normal levels of contingency to be applied.

It’s far easier to work with Lenders and outline these costs upfront and demonstrate that your project can absorb a higher contingency . Rather than using the standard 10% contingency and needing to go back to the Lender and ask for an increased level of funding. Which could then be perceived by the Lender that you are not in control of your development and finances.

This is something that we help manage and facilitate with our clients to ensure the project is correctly funded from day one.

For more information on managing contingency, Modern Methods of Construction and how to fund projects with these challenges. Don’t hesitate to get in touch.

🔹 Another Room Taken 🔹

Really pleased another one of our beautiful new rooms has been let after the first virtual viewing 😃

Having only just finished the project we haven’t even started marketing the property!

However the tenant has seen our other projects and was keen to take the room even before we had our professional photos and videos done…

That’s now more than half the rooms already taken before we’ve even had to advertise! 🙌