Advice for first commercial finance application

Hi Rolf

I would love it if it was a resi deal. If you really think you can get me $125k for curb/gutter/footpaths/services/contributions than I would love to talk to you. What do you think?

Hi Terry

Plan A is to sell one lot and refinance the other two into 25yr PI at <45% LVR.

Plan B is refinance all 3 at 65% LVR. I can service this debt on my income.

Plan C is have a review with the business banker and have another 12 month term?

Happy for guidance if You foresee issues here?

 

What if you can't service or otherwise can't get finance

 

GRV?

 

Hi Terry

If my income takes a big hit I'll be stuffed and if I otherwise can't get finance I will once again be stuffed.

That isn't news to me, I would love to fund this through resi with 25yr term though I haven't been able to yet.

As far as I can tell my options are:
1 Commercial finance with those risks highlighted by Terry amongst the other risks and costs and inconveniences

2 Save up until I have enough cash

3 JV - my JV questions thread went no where so I'm not to sure about this option. As mentioned in that thread I do have a cash buyer for one of these lots though I don't know how to structure a scenario where I can acess those funds prior to settlement to complete these works and pay contributions. The potential purchaser is open to ideas, though I don't have the answers.

Happy for ideas as opposed to questions!

I'm not here pretending I know everything... I'm here asking the questions!

 

There are 2 major risks
a) the lender criteria of banks etc change, and/or
b) your circumstances change.

If you have someone wanting to buy one there are many ways to structure this such as
a) partnership
b) jv
c) sale under instalment contract
d) loan
e) off plan sale
f) sale on completion.

 

Terry that was a great help.

Thank you

I will research those options.

 

How'd it go?

 

Hi Lixas

I am researching the options and trying to gain a basic understanding of each off them. I will then discuss with the potential purchaser and perhaps Terryw if it eventuates from there.

My biggest concerns are not mixxing our assets and liabilities. Just the money and the proposed lot.

I have probably been overthinking it. I will see if the buyer is still interested maybe we should sit in front of a solicitor together and they can sort it out...

Any input?