Hi Forumers,
Just wondering if people who've managed to get finance for development of 3 or more dwellings on a residential basis (i.e. not commercial/business loans) and if so who the lenders were?
Lender must be ok with the fact that we've got other developments on the go.
Serviceability is all good so thats not a problem
Must be able to borrow in Pty/Ltd ATF Trust
Lender must also be ok that these homes will be sold once completed (or beforehand if possible).Only reason we ask is because we've had a lender turn around giving us grief because they class us as 'developers' and although homes isn't a problem nor is serviceability, the fact that we're not holding onto any IS a problem for them……something to do with "its not in their business model to deal with developers"! Arghhhhhhhhhhh
. We haven't had this problem with our other lenders but this lender has been a pain in the bum!Would love to hear of lenders who are ok with the above?
Cheers,Kim Anand
"Money Can't Buy you Happiness but it Does Bring you a More Pleasant Form of Misery"
La Trobe would do it at 8.5% on a low doc basis happy that they will be sold.
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
I believe the "secret" is to claim your "INTENTIONS" are to keep/rent the properties, not sell them. That should help.
Hi Misty1,
We've tried that. We even got a property manager to write a letter saying they intend on managing the leases once we sell. The bank still didn't believe because they saw on our credit report that we currently have several other 'big' loans which are obviously developments..
we're still hunting….can't believe its becoming this difficult?!thanks for replying
Hi Kim,
i have just been going through the same process. With 3 units, as you have found, your choices are limited, for residential loans.I was looking for a loan which would give me leeway to capitalise my interest.
I found that:
– NAB come back with lower end valuations in general, which made this difficult.– St George calculated my lending potential by adding land value plus construction cost, so capitalising my interest was not an option.
In the end, my broker managed to increase the end valuation with NAB to the level I needed to get me through. I won't be able to fully capitalise my interest but enough to give me breathing space. I also borrowed through a pty ltd trust structure.
Hope this helps,
Good luck,Mee Chee
Mee Chee but it wouldnt have been Lodoc with NAB certainly not as a devlopment deal.
Richard Taylor | Australia's leading private lender
Hi Mee Chee,
Thanks for sharing your recent success! I've heard from a few people NAB is an option as well but what we've found is it must really depend on which branch or lending manager you see because they all give different answers…..Go to 3 different branches of the 1 bank and we'll get 3 different answers to the same questions! Its soooooooooooo frustrating.
I think we'll investigate NAB further as a few people seem to think they will do what we want……….I'll check the LoDoc side of things as well Richard – not that i don't trust you but i just wanna see what they tell me.
I'll let you know how we go!
Man finance is just 1 big headache
Hi Kim, not a lot I can do to help except to reassure you you're OK & not alone. I almost told the St George bank manager to jump off a cliff.
Same thing, low end valuation & heaps of unhelpful obstructions. Yet, my houses are almost at completion & 2 more projects are due to begin, I may add at the same snail's pace!
I might also tell you that 12 months ago, I didn't even have a loan. I noticed that I had nothing under "do" when I finished reading Steve's 1st book. Everything was "done". Now I have "do, doing, done".
I also have a lot more white hair!
Good luck,
Kum Yin
. We haven't had this problem with our other lenders but this lender has been a pain in the bum!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
