Private Lending – The Future of Development Finance
Rates from 7.5% p.a*
Flexible Presale Terms
LVR 65% on completion
As we move well into 2018 significant trends that align both investors and developers are emerging in the private lending space.
Private lenders entered the market in a big way last year, they were seen as the expensive option of last resort. This is now changing as the private lending market is taking a bigger share of overall development funding.
Why go private? The many benefits include flexibility with LTV ratios, lower presales hurdles and flexible repayment terms. Speed to settlement and funding decisions are made on the spot and can be relied upon.
Most developers have recently been hit with a perfect storm of events. Whether it’s lack of funding to settle sites under option or construction stage most developers are experiencing restrictive levels of developer equity. The realities are starting to bite.
Presales are slow, site holding costs are eating into profits and construction costs continue to rise.
Many developers have been forced by the banks to lower pricing on off the plan sales to reach high presales hurdles. This results in project revenue becoming capped in turn damaging bottom line profits.
Savvy developers are benefiting in many ways from these less onerous private funding channels.
Privates are becoming true business partners who will likely back not just their current project but also their future pipeline.
CPC provides developer advisory services to determine our clients short and long-term funding needs. We are connecting investors and developers with cost-effective opportunities that weren’t around months ago.
See below for our latest offerings and contact us today to discuss private lending options if you want to get your project ahead of the curve.
Contact – David Lovato
M +61 434 932 634
E: [email protected]
W: www.crowdpropertycapital.com.au
* Rates will vary depending on the projects location, stage of development and private lenders appetite for risk.
