Hi all,
I require finance to allow me to settle on a property and onsell it, any advice on the best way to approach this would be greatly appreciated.
Here are the details:
– A business partner and I formed a company (equal ownership) and purchased 2 shares in a 20 lot (20 shares) subdivision trust a couple of years ago and we're expecting titles to be available in the next month or two.
– Approx an additional $200,000 ($100,000 per lot) is required to settle.
– We have invested a total of $140,000 cash ($70,000 per lot) to finance purchase & development.
– Sale price is estimated at approx $250,000 per lot, $500,000 total.
– Our equity is estimated at approx $80,000 per lot, $160,000 total.
– The lots should be onsold within 6 months.Unfortunately I currently have no income, are there any financing options available that may be suitable?
Many thanks,
Chris.Chris
I have read and then read your post and still confused. Can you break up the numbers for me again.
What is the Contract purchase price.
What do you need to borrow.
Where are the Lots, zoning, size etc.
What other security is available to take or is it a stand alone proposition.
Interest rate will be high but doable subject to the above.
Richard Taylor | Australia's leading private lender
Hi Richard,
Thank you very much for your quick response. Please find additional details below:
What is the Contract purchase price.
The contract purchase price is yet to be finalised however is expected to be approx $170,000 per lot ($340,000 total).What do you need to borrow.
Approx $100,000 per lot ($200,000 total).Where are the Lots, zoning, size etc.
The lots are in Hayward Street, Bunbury, WA; R40 zoning; approx 200m2. I can provide a detailed lot plan if required.What other security is available to take or is it a stand alone proposition.
Ideally stand alone.Many thanks,
Chris.Chris
I cant see a problem with a Nodoc land loan subject to the contract and valuation details.
Presumably the Contract reflects your deposit paid etc ?
Why has the purchase price not yet been agreed.
Richard Taylor | Australia's leading private lender
Hi Richard,
Thanks again for your quick response.
This was a cooperative development project, with cost shared evenly and profits (lots) distributed at the end of the project. We are still waiting for all the costs to come in before calculating final purchase prices.
Assuming you would be interested in helping us with this, would you please advise a rough, high side estimate for the following:
– Time required from start to finish to acquire funding.
– Fees, charges, interest.
– Next step.Many thanks,
Chris.Chris
As it is a fairly short term loan it would be development style loan so interest rate would be commercial nature.
With everything to hand you would get funding in 30 days. Fees charges interest rate being Nodoc would depend on the valuation which i would need to see the contract first to give you an indication.
Email me what you have and I can come back to you with some rough figures at this stage.
Would also need Company constitution and certified ID for each Director.
Richard Taylor | Australia's leading private lender
Hi Richard,
There's not too many details I can send you at this stage. Rather than spending time on this now, I'll email you in the next month or so when I have enough details to advance further.
Many thanks and regards,
Chris.Chris
Sounds good.
Richard Taylor | Australia's leading private lender
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