Development Finance Broker Needed

Discussion in 'Loans & Mortgage Brokers' started by LindsayP, 7th Mar, 2017.

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  1. LindsayP

    LindsayP New Member

    Joined:
    15th Jan, 2017
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    Location:
    Melbourne
    Hello property enthusiasts,

    I am in search for a savvy broker for my development finance need, most probably will be a commercial loan. Do you know/use a good broker that you would recommend? I am in Melbourne btw.

    Thanks in advance!

    Lindz
     
    LindsayP, 7th Mar, 2017
    #1
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Location:
    Perth WA + Buderim Qld
    What's the deal? Depending on what you're doing it may be possible via Resi.
     
    Jess Peletier, 7th Mar, 2017
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    How many dwellings ?

    ta
    rolf
     
    Rolf Latham, 7th Mar, 2017
    #3
  4. LindsayP

    LindsayP New Member

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    15th Jan, 2017
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    Location:
    Melbourne
    It's a development loan for a 7 units development in a south-eastern suburb.
     
    LindsayP, 7th Mar, 2017
    #4
  5. LindsayP

    LindsayP New Member

    Joined:
    15th Jan, 2017
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    Location:
    Melbourne
    It's a development loan for a 7 units development in a south-eastern suburb.
     
    LindsayP, 7th Mar, 2017
    #5
  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Location:
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    You have 2 options - commercial lending or La Trobe.

    If this is your first development then you will not be eligible under commercial lending. Lenders have an extremely small pool of funding for commercial development transactions so they are picking and choosing their applications. In other words you need to tick absolutely every single box, profit margin, satisfactory builder, sponsor experience, 100% debt coverage/presales, full 10% deposits, limit of non resident sales, etc.

    La Trobe is your second option - you will still need presales (as its over 6 unit construction) however you dont have the same stress testing as traditional commercial development lending. You do however need to demonstrate a minimum 15% using the margin scheme calculation. The other good thing about la Trobe is that they will service on the peak debt so post construction and after the presales are deducted, rent on the remaining townhouses can be included.

    There are a couple of brokers on the forum that are based in Melbourne and can assist you so call them and have a chat with them.
     
    Shahin_Afarin, 7th Mar, 2017
    #6
    AllyJ, Ethan Timor, Jess Peletier and 1 other person like this.