Non-bank lenders: Mezz and Private Equity suggestions

Discussion in 'Loans & Mortgage Brokers' started by Tom Simpson, 30th May, 2019.

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  1. Tom Simpson

    Tom Simpson Well-Known Member

    Joined:
    13th Dec, 2016
    Posts:
    186
    Location:
    Subiaco
    Hi Team

    I have a client looking to develop 5 dwellings on a property in the Perth southern suburbs and we're looking for finance. We don't want standard commercial lending as this requires pre-sales which we're trying to avoid, likewise we've spoken with RAC however due to some complications this isn't an option.

    Does anyone know of any mezz lenders or private equity that would be interested?

    GRV: $2.5m inc GST
    Costs: $2m
    Debt: $1.5m
    Profit on cost 15%

    Thanks,
    Tom.
     
    Tom Simpson, 30th May, 2019
    #1
  2. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    5,058
    Location:
    QLD/Australia Wide
    Hi, which commercial lenders have you spoken to about this already? I'd be surprised if you can't find one that doesn't require pre-sales, not exactly a large development project. Will the properties be individually titled?
    Also what LVR?
     
    Lindsay_W, 31st May, 2019
    #2
  3. UrbanPlanner

    UrbanPlanner Well-Known Member

    Joined:
    20th Jul, 2015
    Posts:
    54
    Location:
    Perth
    Mezz lenders will surely chew a big hole in that 15% margin? Unless this has already been allowed for in your feaso
     
    UrbanPlanner, 31st May, 2019
    #3
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