Our funding process aims to not only minimise finance costs to the developer, it is also designed to be as efficient as possible whilst ensuring your partnership with ethical and responsible lenders. We have really enjoyed our experience working with the team at GPS Development Finance. The flexibility with LVR’s and presales has allowed our business to keep developing, even when the lending and general residential market were telling us not to. GPS have allowed us to keep doing what we do best, and they support our firm belief in our business. Their offer gives us certainty in our planning, as there are no games played.
We highly recommend GPS to all our friends and developer communities. Cole Projects would like to thank GPS for the excellent service and advice provided for our now sold out project being ‘Vue On Bradman’ in Maroochydore. Richard and his team were a pleasure to deal with commercial capital lending and we are planning to use GPS funding for our next project. We are happy to recommend GPS to other colleagues within the development and construction industry. For commercial finance your options include the Big 4 banks, other banks, non-banks and private lenders.

So make sure you know how the bank or lender is going to value your property and check that the figures work before you go spending a few thousand dollars on a useless valuation. To prove a market exists for that development before they fund.Pre-sales set a line in the sand in terms of price for the completed units, and that buyers are willing to purchase what you are building. These days a project of fewer than 50 lots or units wouldn’t be considered that big, and most large projects now contain 300 or more units making the lenders ask for pre-sales to cover 100% of debt.
Since 2017, our team has completed loan facilities exceeding $150 million across some 40+ projects. Our funding capacity has grown and we are now providing property development loans up to $15 million. Submit your scenario today to get express funding from HoldenCAPITAL Partners. Private lenders fund loans themselves, and they are often less conservative about property development project valuations than bank lenders. As any experienced property developer will tell you, property valuations can make or break a property finance development application, especially with a traditional lender.

Construction invoice factoring works just like any other form of invoice finance. The facility allows construction companies to access money from unpaid invoices prior to the original due date of client invoices, albeit at a small discount. In this scenario, unless the developer has $1 million cash at hand, or other investors willing to provide capital, then they wouldn’t have been able to afford the $5 million total build cost through a loan based on LDCR.
In the current lending climate, there is little appetite from residential lenders to be involved in property development. Active developers today look to commercial lending vendors to get their deals financed. What is poorly understood is that getting initial finance is often the hardest part. Where an alternative lender is the only option, this does not mean that you are ‘locked into’ that lending institution.
Opportunities present themselves whereby we have parties interested in becoming equity partners with developers. If this is something that is of interest to you or could work for your scenario please let us know. We can also advise on land acquisition as part of the construction finance. We can help you navigate the often complex pre-approval and application process. Anything over this and you may be required to meet 100% presales debt cover. If 50% presales is what is need to clear the debt, then that is the benchmark the bank will use.

A delay in the finance approval would mean a lost business opportunity for our client. We worked hard to determine their financing needs and to match them with a private lender who could provide them with the funds they needed quickly and on the best possible terms. One of our developer clients in Sydney found a commercial property project opportunity in a highly desirable location. However, they needed funds quickly to secure the property in a competitive buying situation with other developers. Typically, you will need to provide 20 per cent of the funds for a 2-dwelling project and 30 per cent (or in today's tougher lending environment up to 40 per cent) for larger projects, which lenders class as "commercial" loans.
Many of our clients have traditionally sourced funding from major banks, but are now turning to private lender development finance. Banks are risk averse and require a certain level of pre-sales with property development loans. Funds from pre-sales are held on trust and can’t be used to help finance the project. Banks may require up to 60% of the project to be pre-sold before providing finance for property developers. Clinton has over 25 years’ experience in commercial property development and management, asset and facilities management, and project delivery. He is passionate about providing property developers with tailored and agile funding solutions for site acquisition, construction and residual stock.

Pre-sales are unconditional, arm’s length property sales that are made by a developer before construction is completed. The banks need a 10% non-refundable deposit held in a solicitors trust account to consider the sale, a conforming pre-sale. TDC is the complete sum of all the costs to purchase your development site, obtain the DA, construct , marketing, sales as well as interest and holding costs. The TDC represents all the costs involved with completing a project. As such, irrespective of a business’s nature, history, or background, we assess all commercial loans on a case-by-case basis.
Unlike some other lenders, we possess the flexibility and capacity to work closely with brokers and developers. We provide ongoing finance support from loan inception through to loan completion with a vested interest in ensuring each project delivers on its financial goals. Development loans are used to develop property assets, including new construction, excavation work, and important infrastructure such as storm sewers and roads. In addition, a development loan can be used to support the holding costs of the property until it can be sold or support fully amortizing permanent financing.

We can give you an idea on how much equity you’ll need if you go through a bank, or a specialised lender. Transparency of offers, and incentives.The banks will instruct their solicitors to review the pre-sale contracts to check there aren’t undisclosed incentives like cash rebates. These could artificially inflate the bank valuation, and affect their security. It is less common to do an entire property development using Private Lending due to the higher costs involved. The non-bank specialised development lenders are perfect for small to medium sized projects.
If you’re struggling to repay ATO tax debt or have defaulted on another loan, we’re still here to help. In general, offices, warehouses, and retail shops are quiet straight forward. Whereas the others listed above will fall under the specialist lending category. This means it will take longer time for assessment and more documents required.
As an experienced property development finance lender, HoldenCAPITAL Partners recognises that every project is different and therefore requires a unique solution for property development funding. We work alongside developers to help them grow their business and develop a pipeline of projects with our flexible terms, competitive pricing and fast approvals for private development finance. Simplicity has a strong track record of sourcing development and construction loans in Sydney, Melbourne, Brisbane, Adelaide & Canberra for projects. We source capital from all the banks and a long list of alternative funding sources.