Private Lending - Portfolio Development
Features of Private Lending - Portfolio Development
Private lending has emerged as a preferred solution for many investors and developers looking for an edge in a competitive property market. Its appeal lies in its ability to offer fast, flexible funding that adapts to the unique needs of each project. Rather than relying on rigid income or credit score criteria, lenders often take a broader view, considering the value and viability of the development itself. This asset-focused approach streamlines approvals and accelerates timelines, helping borrowers seize opportunities without delay. Developers also benefit from the freedom to move forward without waiting for high pre-sale numbers—something that can slow down traditional finance routes.
For investors, the private lending space provides a pathway to stronger yields, especially when portfolios are diversified and managed carefully. The sector’s versatility is another advantage, supporting everything from bridging solutions to equity release and project funding, all designed to maximize return and reduce red tape.
Secured Against Real Estate Assets: Most private loans are secured by property, giving both lender and borrower confidence and collateral.
Instead of focusing solely on borrower income, assessments often consider the project’s Gross Realisable Value (GRV) and Total Development Costs (TDC).
Low/No Pre-Sales for Projects: Unlike major banks, private lenders may not require extensive pre-sales—enabling you to launch your project sooner.
Higher Return Potential for Investors: Private lending portfolios are structured to offer higher interest rates, balancing risk with potential returns when diversified properly.
