Sydney Building company seeking $2.5m to refinance $1.3m land loan and $1m to complete construction, and capitalised interest 12 months.
A “side project” for a Sydney building company which had purchased a Northern Sydney Suburbs property for a knock-down rebuild. Existing $1.3m home loan and $1m for construction required. The builder had run out of funds to complete.
The building company had breached their mortgage with the incumbent bank by knocking down the previous residence. They had council approval to do so, but their bank declined funding as profits weren’t sufficient to cover company liabilities and the directors personal obligations. Main and second tier funders did not want to work with the client given this situation, and a half-completed house that didn’t have a roof on.
The Simplicity Solution
Our Sales Manager found a private funder that analysed the risk of the project. Their DD revealed that it was worthwhile supporting and their investors agreed. The building company had an impressive resume of completing similar builds. The Private Lender appointed their own Quantity Surveyor and valuer. The end value supported an attractive return, and the QS will control facility drawdowns through to completion.