Search

Property Development Finance Explained

New to the property development sector and unsure how to obtain finance? Or you might not be new to the space although you would like to understand the financial sector in a little more depth...


I often hear a development facility misworded with a construction facility, so lets start off with a side note, a development loan is a commercial transaction (therefore the transaction is for business use).


The funds are used to fund the DEVELOPMENT of property, this includes any project exceeding 4 dwellings , which council approvals need to be obtained. This does not include cosmetic renovations or small constructions.


In order for you to be eligible to borrow money for a development you have to have a company or a trust, due to the NCCP Act not being applicable to borrowers in the commercial space.


There are many types of lenders that facilitate funds in the development space including banks, second tier lenders, main stream private lenders, high net worth investors, & or family offices.


Banks traditionally have capped LVR's, are location specific, & also require a minimum debt coverage. Second tier lenders are quite similar with their policies.


When we step into the private lending sector, their is lenience with regard to LVR, the products available within this sector are First Mortgage, Second Mortgage / Senior Debt / Mezzanine Funding, & Equity Funding.


It is not necessary to obtain debt coverage and financials are not required. This provides the property developer with fast tailored solutions for their developments.


We help property developers secure funding for residential projects, commercial projects, mixed-use development projects, industrial projects, urban projects, & land bank funding.


Our strategies are a recipe for all kinds of developments and locations, which we implement for developments over Australia, New Zealand, Hong Kong, Singapore, Indonesia, & Malaysia.





#propertydevelopment #realestatedevelopment #developmentfinance #developmentfunding #equityfinance #equityfunding #privatebanks #banklending #commercialbroker #financebroker

31 views0 comments