Simplifying processes and operations
When speaking with property developers, one of the most common complaints we often hear is the fact that they end up spending a lot of time doing the things they don’t enjoy — such as the admin, processes, paperwork and operations — instead of focusing on the element they truly enjoy: developing and building homes.
‘There must be a more efficient way to do this’ or, “Why aren’t any systems smart enough to manage all of this for me?’ are regular grievances we hear from developers. No one particularly enjoys doing the boring admin stuff, but property developers dislike that more than most people because they feel it is a waste of time when they could be building homes. This is the plight of many developers who, despite achieving significant growth, still rely on basic or outdated software and legacy tools and practices that slow them down.
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Thankfully, we are now starting to see more holistic, smarter tools available that can simplify the lives of property developers. An increasing number of smart data-driven solutions have been developed by industry professionals, rather than outsiders, that truly understand the pain points and how to best overcome them with a one-stop-shop solution. For example, several data-powered firms have emerged in recent years to help with tasks, such as site sourcing, project viability assessment, financing, and finding skilled workers.
Emerging property developers — who are younger, digitally-savvy and socially engaged — are particularly aware of the need to streamline processes and are keen to adopt tech innovations that help them improve their efficiency. But, once again, while the benefits of adopting technological innovations are obvious, it is easier said than done. Where can you find tech providers? How do emerging developers pay for the adoption of their services?
How lenders can support developers streamline and simplify processes
Finance providers are well placed to aid emerging property developers in streamlining their processes, starting from the all-important funding. Securing finance is never an easy task, let alone for budding developers who are starting their career. The ‘funding maze’, as some developers like to call it, is difficult to navigate and understand. And, even when a lender is secured, the process of due diligence is often lengthy and requires multiple sets of documents.
‘Why do we need to send the same set of documents to the lender, lawyer, valuer, and surveyor?’ ask many property developers. This is a fair question and a challenge that has a relatively easy solution: the finance provider can easily integrate all these processes into one to make the developer’s life as easy as possible. This is just one of the many examples of how lenders can truly make a difference by simplifying processes.
Another example is the process of loan drawdown, a sticky point for borrowers who need to be able to draw down on their loan in a timely manner in order to pay their workers and the supply of materials. Developers often complain that the drawdown process is painful because payments take way too long to go through. Lenders have the ability to simplify the process by working with a good payment provider, thus making it easy for the developer.
To help make borrowers’ lives easier, we are building an exclusive by-invitation-only property network where our developers can access information, obtain data and research, build contacts, seek mentorship and unlock funding.