Duplex Construction Finance
Duplex construction funding – Geebung
Red & Co. Finance recently funded the construction of a small development in the Northern Suburbs of Brisbane. The project was for construction of a duplex on a low-density block in Geebung. What made this transaction interesting?
- The clients were a PAYG project manager and PAYG town planner – they presented quite well to all lenders with the requisite expertise to execute a project of this type.
- Prior development and construction experience in the same area
- The clients were Builder/Developers – generally hated by banks in the current climate
- Proposed rental income able to be used for servicing
- Low doc facility – no tax returns required!
- Interest Only Rates from 7% so affordable flexible funding in the private space
This deal would have been easily funded by the banks not too long ago, but due to their recent retreat from just about all forms of lending, we had to find a cost effective and viable solution.
The deal was actually declined by the lender in the first instance, but we worked with them to not only increase the loan amount to the desired level, but have the deal approved with that same lender. The issue was with the valuation (done by a well-known listed firm) which was actually factually incorrect, and it took some time to rationalise that a project that made commercial sense should prevail over a poor valuation assessment. In the end, Red & Co., the lender and the client work-shopped a solution where all parties to the transaction felt comfortable going forward. If you need a yes to your loan application, place it in the hands of experienced development and construction finance specialists. Call or email Greg Turner today on 0417 698 345 or [email protected].