Could investing in small property developers be the solution to the housing crisis?
Following the global financial crisis, banks and other financial institutions became increasingly cautious and conservative with their lending. While this may have contributed to a more stable financial sector, this does mean that many developers have struggled to find funding for projects that are commercially viable. Small property developers have been hit hard by this. In 2008, small developers accounted for 28% of total developments, whereas in 2015 they accounted for only 12%.
One of the businesses looking to change this is Clearwell Capital. It is Clearwell’s aim to provide these small property developers with the funding they require to build new homes, while following a robust risk management process and minimising risk exposure to the company and its investors.
Clearwell feels that the variety and quality of developments created by smaller developers contribute to a more diverse and colourful architectural landscape, compared to homogeneous estates often produced by larger housebuilders. By supporting small property developers, Clearwell can help create a world in which architectural diversity flourishes.
Clearwell Capital is currently raising money via 3-year secured property-backed bond paying 10% per annum. Follow the link below to find out how you can help Clearwell Support small property developers.