This is a fantastic opportunity for investors looking at a secure funding opportunity, this development is in the center of Folkestone, a port town on the English Channel in the country of Kent, known as the Garden of England for its beautiful nature and natural beauty. It is an important harbour town and now a commuter belt for those looking to transit into central London.
The project consists of 23 luxury 1 and 2 bedroom apartments, the project has been fully costed, full planning permission has been given all the architectural and structural plans are available for review. In addition to that the main finance and lender has already been approved.
Here are the financials on the project
The project has a GDV of – £13,450,000
Purchase Price – £2.4m plus SDLT
Construction costs – £7,038,498.5
Net profit before interest – £3,782,001.50
The developer alreasy has senior debt and mezzanine finance in place. He is looking for funding of £375,000 from an investor to unlock this finance. In return the developer is a return of 15% over a 14 month period ( £56,250 ROI forn the investor)
The investor has already put 500k of his own money into this project, in addition he is willing to offer the investor a personal guarantee for the sum with his personal property as security. The property has a RICS valuation of 900k with a 450k mortgage. A personal guarantee is an excellent form of security for the investor as it gives the investor the power to force the sale of his personal property should there be a default on the loan.