Forums / Getting Technical / Finance / banks refusing to lend Licensed Builder(not owner builder) for own build

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  • Profile photo of gurjjeetgurjjeet
    Participant
    @gurjjeet
    Join Date: 2010
    Post Count: 18

    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

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of gurjjeetgurjjeet
    Participant
    @gurjjeet
    Join Date: 2010
    Post Count: 18

    Thanks for your answer Richard.

    You are very right. We have been given a glimmer of hope by one bank.

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