Property development without 40 % equity or a private investor

To develop real estate you need neither 40 % equity nor a private investor. You need a plot of land and the right sequence.

A typical situation

A plot worth 100 000 EUR. The plan: terraced houses, construction budget 500 000 EUR.

At the bank the conversation ends fast. They ask for track record and 40 % equity. For a first project that effectively means "no".

What developers who understand the value of money do

They borrow against the current valuation. 70 % of 100 000 is 70 000 EUR. That funds the design, utilities and foundations. The property value grows. Then a new valuation and the next loan against the new value. And so on a couple more times.

The result

In several steps a 100 000 EUR plot can lead to 500 000 EUR of financing. Without a private investor. Without years of saving for a down payment. Keeping 100 % of the equity.

Your land is already capital. The question is – are you ready to use it?

How this works in practice and what financiers assess: Property development financing →

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