All Topics / Finance / (Small) development finance

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  • Profile photo of cc
    Participant
    @c-hook
    Join Date: 2015
    Post Count: 1
    December 6, 2016 - 6:50 pm

    Hi,

    I am looking at doing my first small development and have been speaking to my bank regarding the same. Whilst I am happyISH with the potential deal my bank will do – I ideally would like the risk to be on the project and not me personally (maybe I just need to suck it up). Anyone on here know of a good broker experienced in small developments that they could recommend that is not just a jack of all trades?

    Cheers,
    Cliff

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    December 6, 2016 - 9:05 pm

    Hi Cliff

    All depends on what you call small development.

    How many units are you talking about ?

    We have just settled one for 64 units but good experienced developer with plenty of external equity and sufficient pre-sales.

    Not always required but anything over 6-8 lots you are going to need some cash or equity.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510
    December 7, 2016 - 1:49 pm

    Hi Cliff

    You might find it difficult to get rid of your personal guarantee over a small development, Unless you can get your loan to value ratio down on the whole project. I.e. down to 50-60% as a limited recourse or non recourse loan.
    But if you are up above that you might just have to suck it up and sign

Viewing 3 posts - 1 through 3 (of 3 total)

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