Land Bank then Construction Funding – Luxury Home, Sunshine Coast
A builder approached DFP in mid 2015 to assist with providing finance to purchase a development site for a luxury investment property. The purchase price was $1.20m. The DA was in the early stages of being prepared for a large house with detached pool house. DFP was able to secure vacant land funding at 50% LVR which enabled the purchase of the site and sufficient time to enable the procurement of “owner-builder” friendly construction finance.
- Client has other construction projects underway and no current financial statements.
- Mainstream funding options were limited given loan servicing, credit code compliance, no presales and owner-builder considerations.
- DFP was engaged to expedite a funding solution that met the Client’s requirements for presale/financial statement free construction funding for an owner-buiilder
- DFP undertook a detailed analysis of the portfolio under development and the proposed project.
- DFP completed the underwriting proposal considering for land and then construction.
- DFP has been able to secure land and construction funding from the Non- Bank market that meets with the Client’s requirements.
- This will enable smooth completion of existing projects and the transition of the new project from the Land facility thru to construction completion.
- This end to end solution was a perfect example of the depth of underwriting capability of DFP which involved overcoming conventional lending road blocks around lending for owner-builders completing speculative house constructions with a limited repayment strategy (ie no current financial statements and no presales).
What the client says:
When I was looking for funding I was sceptical about the fees involved when working with DFP.. In the world we live in it was great having someone there that was contactable when I needed them and being able to talk to the same person all the time. If I needed something, they were always there. They took the calls, received the emails and replied to them. That was great.
As a result of working with DFP, I was able to move forward with a couple of builds that I may have still been sitting on.
I would recommend them to other Developers in my situation. If you want to move on projects or small property developments it can be tough to get funding. If someone can give you funds and there’s value in the margin then it’s worth doing.
Sean Whitworth, Managing Director, Beachside Homes
Could your next project benefit from some expert development finance? Get in touch.
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