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When things get a little choppy during a project due to factors beyond your control, like rates rising or build times blowing out, it helps to have flexible and reliable funding in place to see you through.
In this conversation with regular guest and finance guru Dan Holden from Holden Capital, we will be covering:
- what’s happening in the lending markets
- the outlook for the cash rate
- challenges many developers are currently facing with build costs and delays
- case studies and;
- the release of Dan’s book called Constructive Finance.
Keep an ear out for how you can win a free copy of Dan’s excellent book which covers all things Australian construction finance. I highly recommend it for your property resource library.
This is another awesome discussion that I’m sure you will enjoy and it is chock full of gold.
Property Development Training
If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site. The training includes a bonus program called Taking It To The Next Level for people who may want to go into developing full-time.
So head over to propertydevelopertraining.com and take a look… I would love to see you on the inside…
Property Developer Quiz
Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at…
Become a Million Dollar Property Developer
Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory.
In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way.
Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development.
This book has the answers for how you can make the leap into property development. Grab your copy now.
Social Connection
Property Developer Podcast Facebook – https://www.facebook.com/propertydeveloperpodcast
Property Developer Podcast Instagram – https://www.instagram.com/property_developer_podcast/
Property Developer Podcast LinkedIn – https://www.linkedin.com/company/property-developer-podcastLinks
Links
Holden Capital – https://www.holdencapital.com.au
Episode Summary
In this episode, host Justin Gehde interviews Dan Holden, the Managing Director of Holden Capital, a finance broking firm that specializes in property development finance. They discuss the importance of having a solid understanding of project finance and how to navigate the changing economic landscape to ensure the success of property development projects.
Top points from the episode:
- Project finance is the cornerstone of any successful property development project. Developers need to have a solid understanding of the financing process and be able to secure the necessary funding for their projects.
- The pandemic has had a significant impact on the property development finance industry, with many lenders tightening their credit policies and reducing their lending capacity.
Developers can navigate turbulent times by having a contingency plan in place and working with experienced professionals such as finance brokers and project managers who can provide valuable advice and guidance during uncertain times. - Finance brokers have access to a wide range of lenders and can help developers find the best financing options for their specific needs. It’s essential to build strong relationships with lenders and be able to present a strong business case to secure funding.
- The key to success in property development is having a solid understanding of project finance and being able to navigate changing economic conditions. Developers need to stay up to date with market trends and changes to ensure the success of their projects.
Justin starts the episode by introducing Dan Holden, his background, and his experience in the property development finance industry. He then goes on to ask Dan about the current state of the property development finance industry and the impact of the pandemic on it. Dan states that the pandemic has had a significant impact on the industry, with many lenders tightening their credit policies and reducing their lending capacity.
The Importance of Project Finance
Dan explains that project finance is the cornerstone of any successful property development project. He emphasizes the importance of developers having a solid understanding of the financing process and being able to secure the necessary funding for their projects. Dan also talks about the different types of finance available to developers, such as senior debt, mezzanine finance, and equity finance, and the pros and cons of each type.
Navigating Turbulent Times
The discussion then moves to how developers can navigate the changing economic landscape and ensure the success of their projects during turbulent times. Dan advises developers to have a contingency plan in place, such as having additional funding sources or the ability to delay their project if necessary. He also recommends working with experienced professionals, such as finance brokers and project managers, who can provide valuable advice and guidance during uncertain times.
The Role of Finance Brokers
Dan talks about the role of finance brokers in the property development finance industry and how they can help developers secure the necessary funding for their projects. He explains that finance brokers have access to a wide range of lenders and can help developers find the best financing options for their specific needs. Dan also talks about the importance of building strong relationships with lenders and being able to present a strong business case to secure funding.
Conclusion
The podcast concludes with Justin and Dan discussing the outlook for the property development finance industry and the importance of staying up to date with market trends and changes. Dan emphasizes that the key to success in property development is having a solid understanding of project finance and being able to navigate changing economic conditions.
Overall, this episode of the Property Developer Podcast provides valuable insights into the importance of solid project finance during turbulent times and how developers can navigate the changing economic landscape to ensure the success of their projects. The discussion highlights the crucial role that finance brokers play in the industry and the need for developers to work with experienced professionals to secure the necessary funding for their projects.
