Private lenders?

[Micko]

Well after trying lots of brokers I have found it near impossible to finance a house I'm looking at.
It is a large house at lockup stage I can get for 380k, around 80k to finish will be worth at least 700k when finished. I can finish it cheaply as my dad is a licenced builder, I'm a sparky(with experience in renovations), my brothers are plasterers. The house has all certifications up to lock up and comes with plans etc. I have a house that is for sale worth 470k with about 30% equity and 20k cash.
Would a private lender loan against this property or should I just forget about it, I've tried everything and this is my last avenue for finance no one seems willing to even try.

 

[pennyk]

What is the reason that finance has been knocked back?
Is it house related, or related to your financial situation?

 

[Marty McDonald]

Mkm capital (sort of private lender) will lend on an almost complete houses. Max lvr is 70% though I think, so you may be short of equity as they will no doubt take tge purchase price as value.

 

[Micko]

Well it hasn't been knocked backed they just have not tried as the security is at lock up stage/not 'habitable'. I have really good credit rating too, no other loans or credit cards. It's just so frustrating as I know I can easily make it work but I just can't get the finance.

 

[Nathan]

Borrow the funds from family members to make the deal go through? You could borrow the 30% deposit or $80,000 to finish it through a family member, go back to the bank and reval the property afterwards to repay them.

Just a thought, need to do all due dilligence.

 

[tobe]

Not many lenders will look at it before its got a certificate of occupancy.

What do they do with it if you dont pay and they have to sell? No one wants a half finished house, and the banks dont lend on them....

The only exception is if you have a fixed price building contract to get it to certificate of occupancy 'finished' (you cant do the work yourself).

This is why its still on the market, this is why its so cheap.

You either need a fixed price building contract to finish off, or cash, for pretty much the full purchase price.

 

[Rolf Latham]

What do they do with it if you dont pay and they have to sell? No one wants a half finished house, and the banks dont lend on them....

just as micko is experiencing now : )

The price is geared around the low level of financial options too and private money will be the only way

ta'rolf