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What financing options are there...

Discussion in 'Property Finance' started by Arnie Gautham, 13th Jul, 2016.

  1. Arnie Gautham

    Arnie Gautham New Member

    Joined:
    13th Jul, 2016
    Posts:
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    Location:
    Sydney
    Hi Everyone,

    Just posting this out there to see if anyone has any suggestions or recommendations. Thanks in advance for your help...

    In brief, a few of my associates who are builders, have a few potential smaller but boutique development projects in the pipeline and given their current financial commitments might not be able to get conventional financing...

    What sort of alternate options are there?

    I was thinking maybe we could get a joint venture party and share the profits... Has anyone had experience with this and how to find interested investors...? Do banks or other organisations assist with this?

    Regards,

    Arnie Gautham
     
  2. albanga

    albanga Well-Known Member

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    Location:
    Melbourne
    A JV can definitely work and I believe users on this forum have taken part in them.
    If I were looking to invest I would first want to know more about this "associate builders". Who are they? How many developments have they done? Where? How profitable?.etc

    I would then move into the numbers. What do you require and what's my return? When can I expect my return?.etc
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    One option, very simple, is to get someone else to buy and the builder contract to build.
     
  4. tobe

    tobe Well-Known Member

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    Location:
    Melbourne
    only works with a subdivided property without adjoining walls. Strata or where there are party walls has to be OTP which doesn't necessarily help the financing problem.
     
  5. Arnie Gautham

    Arnie Gautham New Member

    Joined:
    13th Jul, 2016
    Posts:
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    Location:
    Sydney
    In regards to providing an analysis of the deal, that I something we could definitely prepare... The builders are commercial builders and are looking at these smaller projects as side work...

    I guess the other question is where or how to search for parties that are interested to invest in such projects... Are there any companies out there that structure these deals...?

    Regards

    Arnie Gautham