Hi
My friend(Licensed Builder) has started a Building company, I am being invited to invest in that company as shareholder. We have two lots of land, one is owned by him entirely & other is a land(currently IP) owned by both of us. We want to build on both. The building company & land holding companies are both separate entities with some common share holders. We have been told by Bank relationship manager that financing the build can be termed as a owner builder & very hard to finance. Is that true? Is there any bank which does this scenario? Anyone here can help?
Thanks in advance
Gary
Hi Garry
Yes very true and not the first time i have heard this.
In saying this if you have a relationship at business banking level and your A & L is strong the deal should be able to be approved.
Course in saying this you are not paying mum and dad residential rates or set up fees and that is something some builders / developers don’t like.
We have financed dozens of both our own project and indeed builders projects over the years but not thru the standard resi home loan channel.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for your answer Richard.
You are very right. We have been given a glimmer of hope by one bank.
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