Development Funding Scenarios - image  on https://ibndirect.com
 

Development site purchase with no financials

THE SCENARIO:

Purchase of commercial/retail property with development potential.
Capital city location.
Client could not provide financials.

OUR SOLUTION:

$3,575,000 loan.
10% pa.
65% LVR.
Servicing verified via Accountants Letter

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Urgent funding needed – 7 days until settlement

THE SCENARIO:

Development block in prime location
Urgent funding needed – 7 days until settlement
Financials not available
Funds only needed for 2 months whilst overseas partner transferred funds for construction

OUR SOLUTION:

Short term land bank transaction
$3.1 million loan at 50% LVR provided
15% p.a. for 2 months only
Settled with time to spare

Don’t be afraid to chase your dreams; let us find the solution to fund your project so you can make your mark!

Minimal Pre-sales required

THE SCENARIO:

44 lot rural residential land subdivision Sunshine Coast
Pre-sales were very low
Full Financials not available
SPV company

OUR SOLUTION:

$7,000,000 loan amount
Settled at 65% LVR – 1st mortgage
Additional 5% on a 2nd mortgage
12% pa
Full Financials were not required
Minimal Pre-sales required

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Full Financials not available

THE SCENARIO:

16 units Brisbane Bayside
Pre-sales not available
Full Financials not available
New company

OUR SOLUTION:

$4,600,000 loan amount
Settled at 65% of GRV, including 100% of construction costs plus interest and fees.
12% pa
Full Financials were not required
Pre-sales were NOT required

How did we fund a $19.5 million development when the banks said ‘no’?

THE SCENARIO:

Funding sought for mid-scale land subdivision in Sydney – 86 lots.
55% LVR.
Some pre-sales available.
Had been in negotiations with major bank for many months.
The developer had negotiated house and land packages with a high profile builder. However, the mainstream lender was not able to assist as they had issues with release of the subdivision certificate prior to completion of dwellings.

OUR SOLUTION:

IBN Direct obtained conditional approval in a matter of days.
The private lender was able to successfully structure the deal to mitigate early release of subdivision certificate.
A loan of $19,500,000 was provided @ 12.75% p.a.
Very happy client and referrer as it was an extremely smooth process.

100% of the land purchase price required

THE SCENARIO:

Funding sought for 13 unit development in Brisbane.
The developer had contracted to purchase a development site and required 100% of the land purchase price.
No pre-sales.

OUR SOLUTION:

IBN Direct obtained conditional approval in a matter of days for funding from 2 separate private lenders to purchase the land and to fund construction.
Client offered a second development block as collateral security
The private lenders were able to successfully structure the deal which involved the land funder leaving funds in on a mezzanine basis.
A loan of $1,100,000 was provided for the land purchase and a loan of $4,127,000 for construction.
100% of construction costs, including capitalised interest & fees, were covered.
Very happy client and referrer as it was an extremely smooth process.

Credit issues and caveats on the property

THE SCENARIO:

Funding sought for 48 apartments in Melbourne.
80% LVR.
Credit issues and caveats on property.
The developer had already completed other apartment buildings in master planned residential project. However, existing mainstream lender no longer wanted to fund projects and client had credit issues.

OUR SOLUTION:

IBN Direct obtained conditional approval through private lender channel
The private lender was able to successfully structure the deal to provide a loan facility of circa 80% on GRV
A loan of $11,300,000 was provided @ 14.00% pa
Very happy client

Pre-sales not required

THE SCENARIO:

Client had commenced a 36 unit development with own funds, fully expecting existing lender to supply any shortfall of funds required.
Existing lender refused to assist due to lack of pre-sales and incomplete financials.
Client also owned a fully completed & leased inner-city residential development.

OUR SOLUTION:

<strong>$6,000,000 loan sourced:</strong>
Low 6% rate for completed development.
Rental income as servicing.
Full refinance plus considerable amount of working capital.
<strong>$7,900,000 construction loan sourced:</strong>
For completion of 36 unit development.
11.25%pa.
69% LVR, based on GRV.
Pre-sales & financials not required for servicing.

First-time Developer

THE SCENARIO:

First time developer.
10 units.
No pre sales.
Financials not up-to-date.
Lack of experience hindered application.

OUR SOLUTION:

Construction funding sourced for $2,700,000 at 11.25% pa.
70% LVR based on GRV.
Very happy client commenced construction without the need for employing marketing agents.
Tax returns not required.
Pre-sales not required.

Financials not available

THE SCENARIO:

Experienced developer.
Several large tracts of future development land.
Zoned as part of a master planned community.
Client required urgent refinance due to lender pressure.
No financials available.
Client required cash out for working capital.

OUR SOLUTION:

$4,300,000 loan provided.
10.4% pa.
55% LVR.
2 year term.
$800,000 in working capital provided allowing client to continue with another development.

Landbank

THE SCENARIO:

Completed land subdivision.
Client planned to construct residential houses.
Client required cash out to commence a secondary development.
Financials not available.
Property unencumbered.

OUR SOLUTION:

$2,750,000 loan provided.
60% LVR.
Loan included 12 months capitalised interest.
10.4% pa.
1% application fee.
Financials not required.

Why Choose IBN?

At IBN, we work closely with our panel of Funders, to move quickly on your loan application. We understand that ‘time is money’ and we make the loan process as seamless as possible. Our experienced staff assist you every step of the way with frequent communication on the loan progress.

We present options that others didn’t know existed

We search for solutions and enjoy the challenge of complex loans

We understand the complexities and requirements for a commercial loan application.

We explain our cost-structure from the outset so that you know what to expect.

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