Hi Everyone,
In the last few weeks I have received DA approval on a duplex development in Sydney that I'm getting ready to break ground on. I have had an issue with the STMP that had agreed to fund a small % of the project and he can no longer offer the funds.
I am hoping that someone on the forum can offer feedback on people or businesses they have used or if they can recommend a person or business that would be looking to fund the now missing shortfall on the project.
The deal is solid and on current buiilders contracted costs and sale valuations a 15%+ return is expected.
A similar brand new duplex directly across from my site just sold for $600k quite quickly, with 5 other equivelant duplex's selling in neigbouring streets for between 590 & 625 in the last 6 months.
The short fall is about $150k on $1mil of costs. I have the bank offering a 90% lend on Land + construction costs ($729k) and I have put in over 150k to make the deal happen.
Please email or call if you have answers to the above questions.
Cheers
Andrew0412607989
Hi everyone,
Quite a few people have read this first post with no comments?
I appologise if this comment comes out the wrong way, But I really just want some genuine feedback from others who have possibly been in this type of situation and some avenues i may look at to solve my problem.
At the moment I have spoken to my broker and the construction loan etc is a great result but as I mentioned above it has left me a shortfall that a money partner had agreed to fill. Due to some unforceen events he has had to pull out at last minute and left me chasing to fill the gap.
After reading this forum for many years, I aware of some very experienced and skilled investors I would love to hear some stories from you that may help.
I'm apart of the RESULTS grad program and as such have been picking the brains of the mentors etc but still looking for that one win/win result to build this property.
I thank you inadvance for your input no matter how big ir small.
Cheers,
AndrewSearch for another JV partner (whether it is finance only or equity) – offer an attractive 2nd mortgage rate to them.
Agree with SNM as you wont find a traditional lender or mez provider offer such terms in the current climate.
Your Broker may have investor clients who are after a deal if the terms are right.
Richard Taylor | Australia's leading private lender
Thanks for the replies, Unfortunately the broker doesn't have access to private funds.
I've spoken to some solicitors and accountants in my circle, they don't move in the investment circle and couldn't offer any suggestions.
Being apart of RESULTS has many benefits, at this stage though people are either committed in there own deals or still not comfortable doing a deal.
With the 2nd mortgage option how does that work ? Will they lend a higher % of LVR than the bank. At the moment the house is 79% lend and with the DA now approved a new valuation should offer some more equity aswell.
Is there any good 2nd mortgage products you guys are aware of?
As at this stage I'm just not meeting people with the ability to help fund this or possible I'm just not asking the right questions.
As a possible investor where would you look to find an opportunity? I've considered the saturday SMH as there seems to be quite the communal investor section.
Thanks again for there
Best Regards
AndrewAndrew, it will be very hard to find a second mortgage lender going higher than 80% LVR. You need to find a 'mate' who could help out.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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