What do experienced investors check before lending to a property developer?

Points worth checking in the documents:
- Loan-to-value (LTV): the lower it is, the more room there is if the property sells for less. A common benchmark is below 70%.
- Security: is the loan secured by a first-charge mortgage, or is it a subordinated loan that is repaid only after other lenders?
- The developer: previous completed projects and a track record you can verify. No verifiable track record is a red flag.
- The exit: how and when the loan is repaid (a sale, a refinancing) and whether there is a defined repayment event.
- Stress scenarios: what happens if the project is 12 months late, or the property sells 15% below the projected value.
- Concentration: several projects on one platform add platform risk on top of project risk. Capital is at risk: crowdfunding investments are not covered by deposit guarantee schemes, can lose part or all of their value, and may be hard to sell before the end of their term.