Seeking small development broker

Hi Guys

Firstly, what a great forum this is. I love to read the forum but this is my first post.

I've been involved in property investing (just the lazy buy and hold) for awhile now (purchased my first property around 13 years ago). I stopped around 5 years ago and currently have a PPOR and 4 investment properties. Some have done better than others.

Recently, a friend whom is an architect approached me to do a small development (via a JV I assume). He has knowledge of how the process works but neither of us know where to start in terms of financing. We don't even have a property in mind yet. I'm not even sure we are eligible to service anything but would love to talk to some brokers for these smaller developments of 2 to 4 townhouses/units or even purchasing a run down place, doing a major renovation and selling.

If anyone is willing to leave their details or PM me I'd love to give you a call and have a chat to see if you can help us with the financing of the development and current properties (if required).

Cheers
WTM

 

what do you mean by 'small development'?

 

My guess is

But get you might be referring to price point as 2-4 could be $400k development or $4M+


Either way - first thing you need no matter what is cash/equity and lots of it.
Do either of you have cash or equity ready to go?

 

Ahh sorry guys I forgot to elaborate. I would say $2M tops for this first development including purchase of land or knockdown in Melb and build. My JV partner is an architect so we will save a little in this area as well as suppliers as he can obtain a discount. I have enough equity/cash to cover the $2M but would like to use as little as possible but I'm not sure if serviceability is an issue or not.

 

@Peter_Tersteeg is in Melb.
@Shahin_Afarin develops himself.

Need to speak with banker/broker - Work out what equity you can access LVR, then work out what can actually access.
Need to speak with accountant
Need to speak with lawyer

That's all before you buy.

Along with make sure speak with agents, builders etc...

 

Any brokers on here willing to assess whether they can lend us any funds?

If so feel free to PM me or post on here and I'll give you a call.

Thanks

 

Start off by educating yourself before contacting a broker - this is a good guide to get you going:

Development Finance Guide

Once you have read that then contact a broker and go from there.

Any half decent broker can help you with the above scenario however I dont think its a good strategy to have random brokers contact you. Generally speaking, good brokers dont have the time to look for clients or call prospective clients - clients are calling them.

You need to take the initiate and engage a good broker - Peter is from Melbourne so you should try reaching out to him and see if he has the capacity to take you on as a client.

 

To add, doing a buy Reno sell with a resi loan means the broker doesn’t get paid by the bank or does but then is clawed back, so keep that in mind.

Development finance for multiple units to sell is the same under resi and that’s where serviceability comes into it. As commercial serviceability isn’t the issue, as the intention is to sell, and most lenders would want sale contracts signed before they draw the loan. What is the issue is your track record as a developer. How many similar projects have your managed previously etc etc.

 

Thanks everyone for your comments and advice, it's certainly been very helpful to me. Keep up the good work

 

Shahin is very good at this stuff and is also a very experienced property developer ....but he isnt small.