Over the years, it has been my pleasure and privilege to connect private lenders with many talented, innovative, and inspirational property developers.
I’ve described before the hallmarks of a successful deal and explained that the borrower’s character and credentials are just as important as the deal metrics and project feasibility.
It’s also crucial that we, as real estate private lenders, share the energy and vision.
I have been on both sides of the same coin, as both borrower and lender, which affords me a holistic perspective on every transaction.
So what are the four standout attributes of a property developer who our private financing partners love to do business with?
1. Resilience and courage
A good developer learns at least as much from their failures as from their victories, and over time, through the unavoidable pleasures and pains of real-life experience, these lessons are embedded in their mindset and how they approach their projects. It’s probably safe to say every good developer graduated with honours from the School of Hard Knocks.
2. Ambition
This boils down to a formidably self-motivated, ‘can-do’ attitude. There aren’t many people who can look at a block of land or an existing residential or commercial building that’s crying out for redevelopment, and visualize achievable ways of transforming it into something truly extraordinary and lucrative. But a bloody good developer can do that in his (or her) sleep.
3. A bold but realistic vision
Property development can be a really risky business. While it might lead to incredibly lucrative returns, it can also result in heavy losses. Do they have fire in their belly? Great, so do we. But we also have a bucket of water on standby if necessary. A property developer who works with Vado’s private lenders always has a clear exit strategy, a crystal-clear understanding of the intricacies of the industry, and exemplary problem-solving skills.
4. Finally, a good developer is quite simply the kind of person you love connecting with
Doing business with someone is about more than transacting. It’s about interacting. A positive outlook, a pleasant character, and a sharp mind are exemplified in many of the most prominent and prodigious developers whom our real estate investor partners, including myself, have done business with since 2002.
In the last 38 months, Vado Private has circulated more than $150 Million into the private lending market across 53 transactions.
If you have a sweet deal you’d like me to take a look at, I’d love to hear from you. Please contact our team directly via the website or phone for a confidential discussion on how to become a private lender or borrower.