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  • Profile photo of MidoMido
    Join Date: 2016
    Post Count: 4

    hi guys
    I bought investment house few years ago now rezoning became approve with council and I’ve got approve to build 4 units .
    I don’t know how to get loan to build 4 units bcuz I don’t have enough cash to show the bank.
    is anyone know how can I start this project without money ?

    best regards

    Profile photo of BennyBenny
    Join Date: 2002
    Post Count: 1,416

    Hi Mido,
    Congratulations on getting the approval – good work. But now, I start to question you a little bit (for your own benefit!!)

    I don’t know how to get loan to build 4 units bcuz I don’t have enough cash to show the bank.

    1. Whoa !! OK, finance is an issue – I am sure that can be overcome, but then, do you have the experience to Project manage this build? If not, then I presume you will be paying more for someone else to do so.

    2. Does the approval have a “time limit” imposed on it (e.g. Do you need to complete the build within – say – 2 years?) If yes, then that will impact on your next moves…..

    3. I have heard of some folk who have approached a builder to build them using his own money, but the final outcome (who gets what when completed) is negotiated before the builder starts work. It may be that you get to retain just one or two of the units, and the builder has the other two for himself (paying him back for the money and effort he has put into the building of 4 units. I can’t tell you any more than that – I have never done this personally.

    4. The other option might be to read up about a Joint Venture – where someone else provides the funds, you arrange the builder, and you agree to share the outcome with the one putting up the $$ for you. Again, all to be negotiated ahead of time.

    Sorry I can’t be more specific – it seems to me like you MIGHT be able to make something work, but finding someone who HAS DONE THIS BEFORE would be vital I would think (and that is NOT me !!) Or look to spending some $$ to educate yourself so you CAN do this would be another realistic option – that way, you would KNOW for next time, and the time after, and…… ;)

    Good luck with your search,


    Profile photo of Richard TaylorRichard Taylor
    Join Date: 2003
    Post Count: 12,024

    Hi Mido

    When you say you don’t enough funds to show the Bank what lvr are you looking at.

    Odd lender that might do 90% lvr at residential rates so if you all you would need is 10%.


    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of wilko1wilko1
    Join Date: 2010
    Post Count: 510

    Hi Mido

    Any more detail that you can give ?
    State, suburb,
    Purchase price, Current Value of the property, current value you think now you have a DA (was it a complying 4 siter or did you squeeze the 4 on), Current LVR

    All the options Benny suggested,
    – Plus knowing the above you might have some more equity in the deal then you think
    – Depending on how the block is located, is it on a corner, are the blocks community titled, You can demolish the existing house and install the driveway and services, pay the council fees and then have 4 new blocks of land. This would be a as is land valuation but now x 4 allotments which can be higher then then single house with approval valuation.

Viewing 4 posts - 1 through 4 (of 4 total)

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