Development Finance Partners can assist Property Developers with a low-doc or lease-doc loans for those who wish to lend against an income-producing future development site.
Low doc commercial loans can be utilized by Property Developers or Investors who want to acquire an older commercial property and realise its upside potential by undertaking a refurbishment. Upon completion, low doc commercial loans are refinanced to a Bank Loan with improved value, serviceability and leasing profile.
Benefits of Commercial Property
The benefits of acquiring a commercial property loan with Development Finance Partners include:
- Non-Bank Commercial loan financiers assess loan serviceability in a manner that is less onerous than traditional Bank Loans.
- The serviceability of a Low Doc Commercial Loan is assessed against the net rent of the Commercial Property Security in its own right.
- Both the level of rent versus the level of interest and the length of the remaining lease term or WALE is assessed in a less conservative manner than the approach adopted by Banks.
- The shorter lease terms that are accepted by Loc Doc Commercial Loan financiers are ideal for Property Developers given the ultimate intention in the short to medium term is to redevelop the site.
- LVR’s are generally comparable to traditional Bank finance with interest costs being in the order of 6%-8%.
- Loan terms are flexible however generally loan terms of between 1-3 years are most common.
- Loan Approvals are relatively fast when compared to Banks with approval time frames being 1-2 weeks.
Commercial Property Loans: Case Studies
Discover Development Finance Partners’ successful commercial property loans by reading through our Project Funding cases studies.
A key example of a successful non-bank commercial property loan that Development Finance Partners provided is funding for a commercial property in Potts Point for 55% of valuation.
Contact Development Finance Partners for Commercial Property Loans
Gain access to competitive interest rates and structured solutions for your commercial property loan requirements with Development Finance Partners.