Joint venture finance and preferred equity financing are options available to leverage and increase your property development loan potential.
But just what are they, and how do they work?
But just what are they, and how do they work?
You get higher levels of leverage at a lower cost than common equity while our funders get a more secured position and higher return for their risk.
Perhaps you have heard of these terms as ‘joint venture funding’, ‘equity joint venture’, ‘joint venture loans’ or ‘preferred equity’. What joint venture finance or preferred equity financing can do is increase your borrowing potential beyond the limitations of traditional construction finance facilities without a second mortgage.
Joint venture finance incorporates the lender in the capacity of investor as a party to the project. Generally, joint venture funding is a project specific, contractual agreement between parties that shares the risk, expenses, losses and profits of the project.
Often the Joint Venture partner is not only contributing funds to the project, but also development experience, industry contacts and other specific skills required to complete the project.
Preferred equity financing is particularly specific. Pref equity finance supports strong and experienced developers with a solid development project to undertake. Preferred equity funding covers both the land and the build, with the pref equity referring to the completed build as a whole.
Preferred equity finance suits larger scale developments with a well-subscribed pre-sale.
Pref equity is useful to protect the developers equity and allows them to have multiple projects on the go, while not degrading the developers ability to invest in other projects simultaneously.
The key thing to remember with preferred equity finance is that the senior debt capital is repaid in advance of the equity.
We present options that others didn’t know existed
We search for solutions and enjoy the challenge of complex loans
We understand the complexities and requirements for a commercial loan application.
We explain our cost-structure from the outset so that you know what to expect.
As a guest of IBN at their recent Allan Pease speaking event, I was genuinely amazed at the global experience Allan shared with the room. Thank you to Scott and Fiona Roberts (and the whole IBN team) for the passion you share with the Sunshine Coast business community. Brilliant work!
I found Allan Pease to be a highly entertaining and amusing speaker and one who gives an insight into peoples feelings and attitudes being expressed by their facial and body actions. I am looking forward to more excellent speakers in 2016.
Thank you to Fiona for inviting me to the event on Wednesday night to listen to Sarina Russo, not only was the talk interesting but the people I met were great company and I learnt much.
Thanks so much to Fiona and IBN Private for the invitation to the Sarina Russo Think Speakers event. It was great to be surrounded by so many wonderful local business people and hear the highs and lows of Sarina's journey.
Thank you IBN for inviting me to your latest evening to inspire with Sarina Russo. It was a fabulous night of positivity with inspiration, networking over great food and company. I received so much from it personally to take away and implement into my business and every day way of life. I can’t wait for the next event!
Thanks to IBN for the invite to a yet another great event. Glenn Cooper provided some wonderful insights into the history, structure and challenges of Coopers Brewery since its humble beginnings 150 years ago. Thanks again and to Scott Roberts for hosting us at breakfast.
Today, I was invited by IBN Private- Scott Roberts to breakfast with Glenn Copper from Coopers Brewing. I thought I was going to learn about my favourite wind down.. Beer. But, I was inspired by a Family owned business who cares about their brand and family values. The same as IBN Private to its customers. Thanks Scott & Fiona.
Many thanks to Scott and the IBN team for the invitation to see Glenn Cooper speak at the breakfast event recently. He was a great story teller and gave me plenty to think about – very inspirational as well.
The speakers were excellent and engaging, guided by a charismatic and knowledgeable MC. A unique opportunity to get up close and personal with such sporting legends. Thank you IBN Private.
Great day thanks Scott, I always meet other like minded professionals to build referral relationships with and the entertainment, food & company tops it off for an awesome event. Thanks so much for the invite up and for continually running these gottogoto events!
It is really wonderful that IBN is getting behind ‘Think Speakers and Events’ and ‘Profile’ magazine. Lisa Wilkinson was an excellent speaker and it was a great privilege to have dinner with her. Thank you IBN for the opportunity.
Loved the Event! Inspiring, uplifting ...a whole room jammed full of positive! Thanks so much for the invite IBN , stayed in a positive mindset for the whole week! Perfect for team building and personal empowerment. Have been privileged to see 3 amazing speakers and each has lifted the soul to greater heights. Many, many thanks.
IBN always go that one step further to achieve an outcome. If at all possible, they achieve results for their clients. Communication channels are an extremely important part of this business, and IBN have an excellent system. Dealing with IBN is professional, at the same time keeping the personal touch as its focus.
I have utilised Scott’s services on a number of occasions, to assist with complex or unusual finance applications where I was not able to assist my clients. Scott was able to assist me on each occasion, and made the process simple and allowed me to keep my clients happy with their needs met as required. I have no hesitation in recommending Scott.