Residential construction finance for property flipper
Red & Co. Finance recently settled a residential construction facility for an existing client.
The client is an experienced residential property developer, who specialises in building high end modern spec homes for profit.
Typically, this client would look for an undervalued block of land within inner city Brisbane with a post war dwelling that can be removed. The block is then often subdivided and two new houses built and sold at substantial margin. This is particularly the case at the moment, with the client’s designs falling into the “Hamptons” style which is very popular in Brisbane currently. This client would typically complete between 5-6 build to sell projects in any given year. The loan for the latest house project, on Belnoel St, Wavell Heights was like this:
- Bank funding (borrower is PAYG and has a strong track record of completing this style of project)
- Up to 80% LVR (Loan to Value Ratio) available
- Loan amount $400,000
- Competitive interest only rate
Most importantly, we found a solution tailored to this client’s specific needs and financial position. Because this particular client is very active in the property development and investment space, they do have a lot of existing debt. This impacts the amount they can borrowing and therefore, the trick is to still find a bank with a great rate that will have appetite for more lending. The right approach can do this even in the tough lending market at the moment.
If you would like to speak to a finance team experienced in residential construction finance, get in touch with one of our specialists, Shoheel Khan on 0418 110 870 or [email protected].