What could prevent my development project from receiving funding?
If your projections for your development project are unrealistic, lenders may be concerned about the feasibility of your project and refuse to finance the development.
Other lending criteria also apply, like your credit history, past developments, experience and financial stability. If you have had bad debts or been declared bankrupt it highly likely to effect your ability to get a loan.
How do you fund a development project?
One of the best ways to fund a development project is to contact a finance broker like CPC that specialises in development finance.
We can help you gather all the necessary documentation, structure your loan in an effective way and submit your application to lenders that are likely to fund your development.
How much can you borrow with development finance?
The amount you can borrow with development finance depends on what the total value of the completed project will be.
Lenders have various loan-to-value ratios (LVRs) and will limit the money they’ll lend you based on their LVR requirements.
Typical LVRs may be as high as 75% (i.e. you can get finance for 75% of the end value of your project) or as low as 50-60%.
What is the process of getting a development project financed?
To get a development project financed you’ll need documents describing your development, including the expected costs and profitability.
You’ll also need documents proving your financial position. This could include information about your assets and liabilities, past projects, and the key team members who will be involved in the development.
While you can submit your application directly to lenders, you’re likely to have a much smoother process and a higher chance of success if you work with an experienced finance broker like CPC.
Should I choose bank or non-bank lending for my development project?
Whether you should use a bank or non-bank lender for your development project will depend on the size of your project, the risk involved, your experience and your financial position.
Banks have stricter lending criteria and may be unwilling to fund a development they consider risky. Banks typically are not as negotiable on their terms and rates as non-bank lenders.
Crowd Property Capital Pty Ltd (CPC)
A registered company under the Corporations Act 2001, ACN 600 539 544
An accredited member of the Finance Brokers Association of Australia (FBAA) Member No M-352808
A licensed Corporation under the Property, Stock and Business Act 2002, Corporation License No. 10065109.
A member of the Real Estate Institute of NSW (REINSW)
David Lovato (Sole Director) holds a Certificate IV in Finance and Mortgage Broking and Property Services (Real Estate Agents License No 201 604 57 )
