Alternative finance options developments

[leicachamp]

Hello everyone.

Besides full doc and lo doc loans via major lenders, what other types of finance is available for 3 unit developments? I have 20%-30% of the total costs.

I am using full doc loans via NAB at the moment, but find that they are not very keen to help with my business. Also with full doc i can only do 2 project at a time. The most obvious answer would be to go on lo doc, but would like to ask other developers out there how they get funding? i have heard some lenders will lend just on project details( NO Doc)

I have also heard that most small developers use lo doc loans.

Any feedback is most appreciated.

 

[Aaron_C]

Are you looking to keep the final products or sell them?

 

[leicachamp]

Hi Aaron.

I will be looking to sell. In the past with a rising market, i would keep 1 out of the 3 but with the market in the last 2 years i have been selling all.

 

[Aaron_C]

I see. Well if you are able to fulfill the pre-sell requirements it doesn't really matter what assets/liabilities you have since there is no 'servicing' - so effectively a 'no-doc' if you will.

 

[Shahin_Afarin]

Building 3 dwellings on a single title is not an issue per se - some lenders will allow it, some won't and some will but will enforce restrictions (such as LVR restrictions).

Lots of questions but initially are they self contained? Is it metro or regional? Are you doing an owner occupied build or a contract build?

Also are you wanting to do it on resi or comm terms? Each have their pros and cons.

 

[imbi3]

As Aaron C mentioned, you can go with commercial loan if you have qualifying presales.
Other option is going private lenders and refinance to main stream lender once the project is finished.