Major issue
Client seeking terms well before construction was ready to be commenced. Our referrer wanted to secure the clients business by offering solid terms early in the piece.
Scenario
Funding was sought for the construction of a luxury single dwelling on a vacant lot near Tweed Heads. The property had an existing facility of about $1m with a major bank over it that needed to be refinanced and the clients were looking to fund all the construction costs & ancillary costs.
The clients were expecting the DA to come through in the next 3 months, but wanted funding approved earlier to put themselves at ease. Loan amount sought: $3.5m GR: $6,000,000.
Loan approved
LVR: up to 70% of ex GST Gross Realisation Loan Term: 14 months (assumed 12 month build term + 2 month buffer). The clients intention is the retain the house long term once complete. Construction Costs: estimated at $2,100,000 Builder: Clients did not yet have a builder lined up.
The Simplicity Solution
The client was presented a proposal from Marketplace Finance within a week of them sending through the basics of what they were trying to achieve. Construction was then delayed for a full year, due to DA and builder delays. Marketplace Finance had to re-do all approvals and re-organise all specialists involved to get a full approval closer to construction starting. Over 300 calls and emails were logged over the 12 months in order to get this deal done. Our referrer was able to concentrate on their residential broker business during this time, and will collect over $21K in up-front revenue.
