Two fundamental rules of property development
The lending practices of the major banks have come under pressure in the wake of the royal commission. It has proven to be a tailwind for an emerging breed of specialist property lenders that are taking market share from the big institutions.
Tim Johansen, Managing Director of Real Estate Finance at Qualitas, says that new opportunities have opened up for specialist real estate financiers.
However, he reminds investors that despite short-term tailwinds there are two fundamental rules of property investing that will ultimately dictate returns. The first rule is about finding experienced and trusted developers.
“We really spend a lot of time on the client, that’s what it is all about.”
The second rule is about identifying the best assets and in this short video Tim highlights the criteria that he looks for when reviewing potential investments.
Click here to see why now’s the time to invest in commercial real estate debt.
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