80% gross realisation loans

[just do it]

Can anyone tell me if they know of a lender that will lend 80% of end value for construction of a duplex. Rough numbers land 160K ,build 320K, end value 640k so want to borrow 80% so 512k. I used to deal with a mob that did this but they have stopped. Any ideas?

JDI

 

[coopranos]

I would also be really interested in this info, and if there are any that would lend 80% on the final estimated valuation of the development on a lo-doc loan?

 

[Rolf Latham]

Hiya Just

There are a couple that I am aware of

Often though u are better off to do the 95 % of land + build contract, since the conditions, entry and exit costs of many of the GRV lenders are a bit rough

ta
rolf.

 

[grossreal]

hi just do it
most lenders will do a gr loan een st george are doing them now but the interest and risk fee depends on the magin at the end and yours looks very thin if you add the 160 plus 320 480 and add interest at say 10% thats 48k your short in funding by 14k and thats leving no margin and lender want 20% margin.
for duplex construction st george and nab for me are the best.
gr lending is not hard as long as its explain to the manager but most will do it
it depends were it is and the risk profil for that manager and that bank.
if this helps