Getting the Right Solution - Case Study
Our client approached us 12 months after they bought a 5 acre block of land. They wanted to maximise their loan amount using the current market value of the property as opposed to the purchase price. The land value had appreciated during that period. They needed a finance broker who understood the ins and outs of commercial finance.
We came up against a few challenges. The major banks would not lend against land without a planning permit. We needed to find a lender who understood land subdivision, and the commercial viability of the whole project once a planning permit was held.
With the right industry contacts and knowing the people behind the project, we were able to put together a strong proposal to a number of private lenders.
The final outcome was the establishment of a land loan at 55% of market value. We proceeded with a lender who supported the deal, whilst still able to create a competitive environment.
The client was able to minimize the amount of cash they ultimately contributed at settlement. This was the first step in the bigger picture. We understood their needs and the complexity of the transaction. Our contribution, which led to the positive outcome has enabled them to proceed with the subdivision of 113 lots across 12 acres.
We look forward to working with them on many projects in the future.