Developing property for buy-to-let is still popular with UK investors. Even during the turmoil of 2016, buy-to-let landlord numbers increased, to a staggering 1.75 million. This doesn’t mean that market saturation has occurred though. In fact, Britain’s population growth is the largest of all EU countries, so now would appear to be a very good time to consider becoming a buy-to-let property developer.
Property training course
A property training course is a great way to acquire the knowledge needed to successfully develop property for buy-to-let.It will also put you in touch with other developers or property mentors, who from their own experiences, can give you essential information on what to do and what not to do.
A good property training course will educate your on how to find the right property and how to develop it for your targeted demographic. An understanding of HMOs, insurance, book keeping, how to find long term tenants, negotiating with vendors, licensing and how to perform due diligence, should all also be covered.
In your search for a property training course, you should remember to vet the course and its instructor. Look for a comprehensive multiple day course run by a property developer, who is currently active in the buy-to-let market.
Look for testimonials from people who have attended the course in the past and read through any case studies that testify to the value of the course and implementing its foundations in the real world.
Property development loans
Property development loans, are for many, still the first route for securing the necessary funds to purchase a property and develop it for buy-to-let.
Property development loans may be issued by joint venture investors or by a financial institution. Joint venture loans are most often issued under a profit sharing agreement, while loans from financial institutions are offered with interest charges.
Two of the most common types of property development loans are ‘stretch senior development finance’ and ‘mezzanine finance’. Stretch senior development finance is a first charge dept that provides buy-to-let developers with high loan to value funding.
Mezzanine finance, often referred to as a ‘mezz loan’, is a second charge debt that allows buy-to-let developers top up the level of their finance for developing the project.