AND I'm dying to find out if someone from SS bought the block down the road.
Yep. cmon you lot... fess up. Who was it?
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
AND I'm dying to find out if someone from SS bought the block down the road.
What'd the seller have up their nose?
westminster/blacky - how difficult was the finance process being a 50/50 under a structure? i'm assuming its commercial lending and you's are servicing the loan as you go so no requirement for off plan sales?
Jez
westminster/blacky - how difficult was the finance process being a 50/50 under a structure? i'm assuming its commercial lending and you's are servicing the loan as you go so no requirement for off plan sales?
Jez
How did they calculate the value of the project?
I've got a contact with CBA for commercial lending (i looked into this a while back when i was looking at belmont - thank god i never went ahead with it!) and this is the repsonse i got when i asked questions around the lending options:
1). Capitalising interest is an option; however we will require Net eligible pre-sales to clear proposed debt in full.
2). We base our value on the in-one-line value. To calculate this very roughly, take your expected on completion value, less GST, less 15%. This is the value we would use in our application. Then, if the proposal is non-recourse (no guarantees etc) times this figure by 65%. As an example, if your on-completion value was $2.8m, the in-one-line value would be circa $2.1m, we would then lend up to 65% of this value or, $1.39m. This may of course be a large hurdle. (70% if there is full recourse).
3). If servicing cannot be shown via existing income streams, pre-sales will be required. To able to include existing income, guarantees will be sought from applicants. If servicing can be shown via existing income, we may have the option of avoiding the pre-sale requirement.
4). There is the possibility we can lend up to 70% of the Net Realisable Value. To be able to go down this path, we will need to meet the following criteria - 50% pre-sales held, and/or 100% peak debt clearance from net proceeds.
Was the finance pre-reqs fairly similar to that? I was fairly intimidated by these requirements back then, but i guess after reading both your posts, it is giving me this urge to just go and find a good deal and get my hands dirty.. haha
Cheers Big Ears!
Blackminster just enjoyed a quiet drink to celebrate Settlement today!
Hoorah!!
Interesting, we (company I am employed at) are building 4 apartments around the corner for the owner.
Will have a look next time I am up that way, though I am fairly sure I know which block it is.
Very interesting. I'd love to know what/how/what they are doing. Has it started construction yet?
Yup we are very excited. It's nice to see ideas from your head translated into plans. Of course its even more exciting to see that constructed but one step at a time.
In the timeline of things we have managed to get to DA lodging approximately 2mths post settlement.
Our structure is very simple so no issues there. The only thing we didnt win on was the limited liability. Had to provide full guarantees each. my brother thinks that once we have built a bit of a relationship with the bank, we should be able to limit this in the future.
Blacky