Hi there,
I'm a registered builder and property developer, until now I've worked only with equity, but now would like to expand my company though financing.
At the moment I have two projects for multiple dwellings (apartments) ready to go, the land has been fully paid in cash, plus a third that has been offered to me, but I am having problems in finding a lender that does not want presales.
Let's see some numbers:
project 1 - loan to development cost 69%; loan to gross realization 53%; loan to net realization 58%
project 2 - loan to development cost 67%; loan to gross realization 48%; loan to net realization 53%
project 3 would have better numbers that project 2, but haven't put them down yet.
I have plenty of cash to service the debts for a few years, but don't have any real income because my job is to do projects like that.
So, banks want me to make presales to obtain a 100% debt clearance, which not only will take a few months, but also will make difficult for me to take the third project, because I would have used redrawn funds to purchase it.
Anyone can suggest me a lender or a broker that knows how to avoid the presale hurdle?
thanks
I'm a registered builder and property developer, until now I've worked only with equity, but now would like to expand my company though financing.
At the moment I have two projects for multiple dwellings (apartments) ready to go, the land has been fully paid in cash, plus a third that has been offered to me, but I am having problems in finding a lender that does not want presales.
Let's see some numbers:
project 1 - loan to development cost 69%; loan to gross realization 53%; loan to net realization 58%
project 2 - loan to development cost 67%; loan to gross realization 48%; loan to net realization 53%
project 3 would have better numbers that project 2, but haven't put them down yet.
I have plenty of cash to service the debts for a few years, but don't have any real income because my job is to do projects like that.
So, banks want me to make presales to obtain a 100% debt clearance, which not only will take a few months, but also will make difficult for me to take the third project, because I would have used redrawn funds to purchase it.
Anyone can suggest me a lender or a broker that knows how to avoid the presale hurdle?
thanks
