Hi everyone
This is my first post. I have a question to ask about Call Options, VentureFinance, JointVentures, Off the plan, Profit-share and whether any of these would be suitable in this situation.
We have contacted numerous solicitors, real estate agents and townplanners in Ipswich and we have yet to find one familiar with any of the above methods.
Does anyone have any contacts I can approach? We are really wanting to read the paperwork on a completed development that has used any of these methods, so that we can learn from an expert.
The last development we did is finally going through council, however we were severely hampered by the recession and available lending types at the time. The banks answer to most enquiries was we aren't doing this type of finance at this time or you need to grow further equity before we can do a loan up. The banks standard answer seemed to be wait wait wait wait.
On our current project we wish to use another method, hopefully one of the ones above, in order to free up cashflow so that the project can move smoothly from one section to the next ie from Surveyor, to townplanner, to Earth works contractor, to the construction, etc, and be completed in half the time frame as the previous one.
We are looking at subdividing a corner block into 1 large block of 450m2 (as it already has a house on this side of the block) and creating 2 small blocks of around225m2 on which we can put smarthouses or to create 1 block of 450m2 onto which we can put 3 townhouses strata titled. Smarthouses on the next street recently sold for $320K and townhouses recently sold for $280K in this area.
So basically with this project, before we start paying any entities of any kind, we want to find a way to structure the finance so that all these expenses can be paid as they come in, rather than having to wait to sell it after construction at the end.
Any suggestions??
Casie
0449918240
[email protected]Hi Casie
Firstly welcome to the forum and i hope you enjoy your time with us.
I hate to say although i have personally completed dozens of such deals over the last 10 years if you thought that the finance market had improved for such lending then regretfully you are very much mistaken.
Of course with equity or cash things are different however without fully knowing your position it is difficult to comment.
Unlikely the vendor will accept a Call Option but i guess you never know until you ask.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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