Private Finance for projects

Discussion in 'Loans & Mortgage Brokers' started by devman, 19th Jan, 2018.

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  1. devman

    devman Member

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    Are there any private/commercial lenders who provide 100% capitalised funding for residential construction projects (1-2 houses/duplex) to a company/trust with a strong equity position (several million).

    Assume a project is $3m total cost (including land, build and all costs) with end value > $5m with a project timeline of 1.5-2yrs.

    I want to compare approx fees and rates between
    • Raising funds privately through investors or
    • Private lender (using existing properties as security)
    • Commercial bank lender
    One of the most important requirements is not having to input cash and having capitalised interest.
     
    devman, 19th Jan, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    exit strategy = pre sales ?

    ta
    rolf
     
    Rolf Latham, 19th Jan, 2018
    #2
  3. devman

    devman Member

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    No presale, just selling upon completion.
     
    devman, 19th Jan, 2018
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    60% LVR = yes
     
    Terry_w, 19th Jan, 2018
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    60% end value is more than funds needed so could be possible to do it fully financed.
     
    Terry_w, 19th Jan, 2018
    #5
  6. devman

    devman Member

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    Oh ok, would you have an idea on the range of rates and fees we'd be looking at for something like this?
     
    devman, 19th Jan, 2018
    #6