We help all entrepreneurs in the real estate development sector who need financing.
In this short video, we show you how we can help you with your real estate promotions:
Finance real estate development
At Dark Keep we are specialists in financing companies in the construction sector and real estate developments . This type of real estate project usually requires significant amounts of financing, which for Dark Keep is not an impediment, since one of our characteristics is that we have no limit on the amount of financing .
Situation to finance a real estate development
Currently, traditional banks do not provide financing to developers because they have very demanding requirements and analysis and risk criteria for the real estate development and construction sector , which have been hardened since the COVID-19 crisis. In addition, they require very high own capital contributions.
Banks, at a minimum, require these requirements:
- Land already paid
- Free of charges
- That the project has been done and the license is already granted and paid
- That have at least 50% pre - sales
- That it be a promoter with a track record and a comfortable financial situation
If these requirements are not met, any access to bank financing will be denied . In addition, they have very strict monitoring conditions for each of the construction stages, which can cause them to stop a work for which they had already granted financing.
When banks deny financing, which with such strict financing requirements is usually very common, it is necessary to look for financing alternatives to be able to finish the work, such as private financing .
One solution is the bridge loan with private capital. You can see the main advantages on our blog. A quick summary to argue the features are:
- Short financing duration ; typically one to five years
- Financing used to obtain the necessary liquidity to carry out a specific objective, such as hiring a construction company, paying for permits or paying for the land
- Financing is granted that is adapted to the needs of the promoter, focused on ensuring that the project can be carried out without incident, even 100% of the investment can be financed if necessary, by providing additional guarantees
- They have the mortgage guarantee of the land that is acquired or of some other real estate asset
How to finance a real estate development
Thanks to our experience in the sector, we have defined two assumptions to obtain financing for a real estate development :
"Capital will always be delivered for certifications "
As you can see, depending on the situation you find yourself in, we can always provide you with the financing you need .
Private financing in real estate promotions
Below you will see the benefits of private financing in real estate promotions.
Advantages of financing a real estate development with private capital compared to bank financing :
- Sometimes it is the only option to obtain financing
- Lower previous demands
- Faster management
- We enter into projects that the bank, directly, does not even consider
- We can take more risk
- We carry out more operations of this type and consequently have more experience
Advantages of financing a real estate development at Dark Keep before other private equity companies :
- Not all private equity companies have the ability to provide financing to promoters due to the level of financial demand required by the operation, due to knowledge or because they have no structure
- We have the added value that we have our own structure of architects, surveyors, lawyers and financiers who can help at any point of the work and we can even help improve processes
Real case: Financing of land for real estate development
Real estate developer who had a viable project but did not have all the necessary resources to pay for the lot where he wanted to develop the project. Therefore, it needed financing for projects because it could not obtain bank financing because the bank currently only finances the construction itself, the developer having to contribute with its resources the already paid and unloaded lot, basic and executive project, building license, fees, etc., as well as a high percentage of pre-sales that usually oscillates between 50 and 70% depending on the project.
Thanks to the fact that this developer had other properties free of charges, Dark Keep was able to finance projects with a mortgage loan with which the developer was able to meet the total price he had to pay for the plot, thus achieving the bank financing he needed. for the construction of the project. As of today, it is practically completed and with most of the units sold , so this is clearly a business success case to which we are very proud to have contributed our grain of sand.
We are at your disposal to listen to your needs, find the best solution so that yours becomes another success story and give you financing for projects.
The developer loan is the traditional way for banks to call the financial product for real estate developers. If you need more information regarding the developer loan , you can always visit our blog.
This financial product is designed to start a real estate development and that developers can have enough financing to finish it. But, as we have said before, banks are increasingly less flexible in providing financing and more developers are forced to turn to private financing . In addition, obtaining financing is essential especially for developers with few own resources and who need liquidity in the first steps of the project to acquire the land, the building license or carry out the previous procedures.
The purpose of the developer bridge loan exists to obtain liquidity at the beginning, as in the cases that we have said before, until bank financing is obtained.
It is also very common when the developer runs out of liquidity to continue with the work and the bank does not provide it. In this way, turning to private financing unlocks the work and it can continue to build until the work deadlines agreed upon at the beginning are over.
According to the newspaper Expansión , the fall in bank credit to the developer could fall by around 25%, which would imply a return to investment levels of 2017. An important brake caused especially by the coronavirus crisis.
However, credit to developers is an interesting product for banks, because it is used to generate mortgages, but the reality is that the supply of bank financing is very insufficient compared to the demand for credit from developers . For this reason, more and more, developers need to turn to private financing to continue with their projects.
Real estate developer credit
If you are a real estate developer and need financing, we will tell you why you can trust private financing and, especially, in Dark Keep
More and more real estate developers need credit, and at Dark Keep we are experts in this sector , because we have our own well-established structure in the sector.
The main objective is to provide financing to a construction developer. Typically, a developer needs private financing to acquire land, obtain permits, hire a construction company or search for buyers.
How we help you
If you need financing to start or continue with a construction, at Dark Keep we are experts in financing for companies in the construction sector .
Thanks to our experience in the sector, team of experts and structure, we have solutions that will allow access to adequate financing to be able to continue with any construction .
The first step is always to try to get financing in a traditional bank , even during this process we can help and advise you, but the reality is that with the very restrictive conditions of the bank, they will deny any request and the construction companies need to resort to private financing to finish its construction.
In addition, it must be said that private financing is not so demanding with the requirements , they are much lower than banking, and it can be obtained much more quickly so as not to stop the work due to lack of liquidity. We try to avoid in all possible ways that the work is paralyzed , because experience tells us that starting again is much more expensive.
We study each case in a particular way and we get the financing you need.
We finance your work
We finance your work , whatever your situation. We repeat the requirements that are necessary for us to finance your work, depending on its status:
- You have the land
If you have the land, we will simply have to analyze two factors:
- The status of the project and licenses
- The pre-sales achieved
- You don't have the land
Even if you don't have the land yet, we can finance your future work in the following way:
- Provide an additional mortgage guarantee
- In the event that the option to purchase the land is very good, simply call us and explain your case.
We listen to all the options and we value all the possibilities to finance your work, you just have to call us.
As we have said previously, not all private financing companies have our experience in the sector, structure and are committed to this type of financing .
Private developer loan
If you are a private developer , you have just started, you do not have enough resources or you have the opportunity to acquire an interesting piece of land; Don't worry, contact us and we will try to help you.
Even if you don't have the land yet, if the area is good, thanks to our investment capacity, experience and team, we can look for solutions and start any real estate project.
Example for a € 100,000 loan with mortgage guarantee, repayment period of 24 months with a TIN of 11%, monthly interest rate of € 916.67 (return of capital at maturity) 4% opening commission, without insurance. Total amount to be returned: € 122,000, APR: 14.11%.