Market conditions not stopping Max Key

[donna]

How does using wholesale investors $$ to fund your property developments differ from you borrowing from a bank?

Banks are offering very low new build interest rates, but then you have all of the risk of cost blowout, time delays all eating into your profit.

I am guessing with wholesale investors, it's the favourable terms - i.e the investors are in it to get profit from the sale, so they also take on the risk so the property developer has spread the risk and award. Plus more funding = larger developments = more profit to go around.

cheers,

Donna

[Frezzinghot]

How does using wholesale investors $$ to fund your property developments differ from you borrowing from a bank?

Banks are offering very low new build interest rates, but then you have all of the risk of cost blowout, time delays all eating into your profit.

I am guessing with wholesale investors, it's the favourable terms - i.e the investors are in it to get profit from the sale, so they also take on the risk so the property developer has spread the risk and award. Plus more funding = larger developments = more profit to go around.

cheers,

Donna

I doubt keys mates even need a loan.

[Keys]

I doubt keys mates even need a loan.

Don't know many without one or three.