Development Finance

If a bank just wont fund your project without a minimum amount of pre-sales, metrics or other ratios. Sokudo Finance can look to source the funds you need through our network of private investors and lenders who are generally less stringent, requiring minimum or no pre-sales and financial statements.

Some key advantages of no pre-sale construction finance can include:

• No pre-sales
• No financial statements
• Borrowers with credit defaults
• Fast turn around and approval times
• Finance to owner builders
• Finance to finish incomplete projects
• Borrowers with limited project development experience

Mezzanine finance and preferred equity can be a way to increase a property developers borrowing potential, beyond the limitations of traditional construction finance facilities.

Mezzanine finance is a form of subordinated debt, behind senior debt in terms of ranking on any claim on property assets and ahead of equity. Mezzanine finance is generally secured by a second registered mortgage.

This debt fills the lending gap between the property developers equity and the amount of senior debt available. Preferred equity works in a similar way to Mezzanine finance however, the difference being a second mortgage is not registered.

Development project risk is illustrated in this diagram

When there is a shortfall of equity in your development project, Sokudo Finance can look to source the funds you need through our network of private investors.