Many developers face the challenge in which the current value of their development object does not enable them to raise the capital that is needed to complete the development object entirely. As Estateguru only lends against the current value of the collateral and not the future value, then for development loans we often use stage loans. This means that when the first investment round of an object enables the borrower to increase the collateral value of the property by developing the object further, then in the context of the given LTV the investment amount can increase via the next stages of the loan.
All loans are funded solely based on the current value of the object and a precondition for every stage is an updated valuation report and/or the cost report of the collateral or its construction.