Financing a small development
Illustrative example — not a real client result
Planning funding from site purchase to completion.
The challenge
A first-time developer has a site with a permit for three townhouses and wants to understand how funding works across each stage of the project.
The approach
- Map the project stages: land, construction, completion and sale or hold.
- Review the feasibility, builder's contract, presale requirements and contingency.
- Compare bank, non-bank and private funding, including fees and how interest is charged.
Example outcome
In this example, the developer has a staged funding plan and knows what each type of lender is likely to ask for.
Development lenders assess both the project and the borrower, and requirements vary widely between lenders.