G'Day Investors,
I’m doing a 1.5m residential complex development in Coffs Harbour.
Due to recent banking finance constrains I need to borrow additional 80k to fund the whole project.
If anybody has spare funds of 80k and wants to invest it for 12 months, I’m willing to pay back 20% more.I can offer 2nd mortgage over my development site as a security.
Regards,
Anthony Pozerski
mob: 0400 782 700
I put an answer in your other post –
You mentioned 69% Lvr on Gross realisation Val – for readers this refers to the end value when the project is complete. Banks lend 65% and your looking for an investor to fund an additional 80k.
Can you also provide estimated hard costs and total development costs?
E.g. If you buy land for 300k and build for 700k with estimated value of 1.5M on completion (500k profit) – to borrow the 1M you have several LVRs
Borrow 1M against 1.5M GRV or end Val = 66.6% LVR
Borrow 1M against 1M land and build cost = 100% LVRDo you have any money to contribute or are you looking for a bank and investor to foot 100% of the bill ?
It all comes down to hard costs – not GRV
P.S. 20% of 80K is 16k – would be a joke if the investor had more initial cash / equity in the project than you?
If you already have the land therefore are an integral part of the project – finding an investor will be easy however try offerring some equity in the project – 16k is nowhere near enough.
If you don’t have the land yet and have just found a block of land with permits – but have no cash. I won’t comment…
I don’t think I’m making many friends on this site….
Don’t take my post the wrong way – if the land is in your name or you have funds of your own to tip in please expand and give more info?
I have already bought the site and have gone through an expensive and lengthy process of getting the DA approved.
The land is mine having 200k equity in there, so I can offer 2nd mortgage as security.
LVR is used for lending against already established properties, it is NOT applicable for construction loans which can be either based on GRV (Gross Realisation Value) or construction hard cost.
I negotiated a 1m loan based on 65% of GRV which is almost enough to cover all development costs. “Almost“ means that I need to rise additional 80k to fully fund this project.
To summarise – I would like to borrow 80k for 12 months and I’m willing to pay back 20% more which means 20% annual ROI.
In exact numbers my offer is that I’m borrowing 80k and returning 96k after 12 months and the investor gets 2nd mortgage over my land as security.
Anthony
Will you have presales?
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