Several short-term financing options exist for property development and purchases. Each solution has its own set of requirements and regulations. One option a broker can present to their client is development finance. Development finance is more appropriate for large-scale projects. Clients with small-scale projects will be offered alternative financing solutions. This is a short-term solution for projects with a quick turnaround. Some investors feel pressure to procure an income stream immediately, so it’s important to come into a financing meeting with all available forecasts and information. The following are features of this financing option. This financing option funds up to 80% of the property, so an investor needs to figure out how they’re going to finance the remaining 20%. Keep in mind that financing for development can only be used to fund the project’s hard costs, such as labor and materials. Investors who also need to finance the project’s soft costs must figure out how to obtain that financing. Soft costs include architecture, accounting, and permit fees. Although this financing option puts several constraints on the investor, it provides for a maximum return on investment. There are several upfront costs involved in any real estate development project. Contractors, inspection professionals, and lawyers expect payment as soon as their portion of the project is complete. A development project doesn’t start to see any income until vacancies are filled. Investors who are adept at crunching numbers and negotiating with business professionals can figure out how to make the financing work so that everyone gets paid on time, including themselves.