When finance is the thing holding a project up
Development, construction, commercial and private finance for the projects the banks knock back. From a Sydney broker who has bought at auction, subdivided, fought council, and got it built.
Why good projects stall on finance
A great project can die on the funding. It does not have to. Here is where it usually breaks.
A property under construction earns nothing, so many banks simply will not fund it. The project that looks great on paper gets a no before it starts.
When the tax returns and financials a bank wants are not there yet, the major lenders tap out automatically, no matter how strong the asset is.
A buyer walks from a pre-sale, your held stock rises, servicing tightens and the lender freezes the next drawdown. The project stalls mid-build.
To avoid rejection, developers settle for any deal they can get, or burn months collecting nos. The right lender was there the whole time.
The finance partner you can put in front of a client
Architecture is where the best projects start. When a client of yours hits a funding wall, who you point them to reflects on you.
When finance falls over, the whole team wears it, you included. I answer the phone, do what I say, and keep you in the loop the whole way.
Bringing a finance broker in alongside the architect, builder and developer at the start keeps the project moving without a funding hold-up later.
There is no cost to you or your client to refer, and broker fees are typically lender-paid. You look good, your client gets funded.
I have sat in the chair. Council conditions, staging, bushfire and stormwater, cost blowouts. I do not need the project explained to me.
Two years stuck. Funded in two weeks.
An architect introduced me to a client with a 60-unit approved development in Western Sydney. A good project, but it had been shopped to broker after broker for two years with no result. No financials available, so every bank said no before we started.
We took it to a private lender who could see the asset and the approval for what they were. A 12-month facility at 68% LVR, funded in two weeks. A project that was undoable for two years got done in a fortnight.
The lesson: a great project can die on the finance. With the right lender and the right structure, it does not have to.
Details anonymised. Past results are not a guarantee of future outcomes. General information only, not credit advice.
What we finance
With access to more than 60 lenders, from the majors to private credit, the deal gets matched to the lender who will actually do it.
Land, construction and completion funding for residential, commercial and mixed-use projects, structured around the build program.
Non-bank and private lenders that price for the deal and the asset, not the postcode, and move faster than the majors.
Options that lean on the asset and the strategy when full financials are not available, for the deals the banks decline.
Short-term facilities to settle a site, fund a gap or get a stalled project moving while the longer-term finance is arranged.
Lending for you, your team and your clients, from first homes to portfolio structures.
Re-cut a facility that no longer fits, free up equity, or move a project off a lender who has frozen drawdowns.
Most brokers have never built anything. I have.
I have bought at auction, subdivided, fought council conditions, been knocked back by four banks on a single deal, restructured it, and got it built. I run my own property portfolio and I have a 1-into-5 subdivision in approvals right now, bushfire zone, stormwater, the lot.
So when an architect, builder, engineer, planner or developer sends me a client, I do not need the project explained. I have sat in that chair. That is the difference, and it is why the hard deals get done.
Development finance questions, answered
Development finance funds the cost of a property project, from land and construction through to completion. It covers residential, commercial and mixed-use developments, and can come from banks, non-banks or private lenders depending on the deal, the documents and the timeline.
Often, yes. Private and specialist lenders can assess on the strength of the asset, the approval and the strategy rather than pre-sales and full tax returns. It is priced for flexibility, but when it is the difference between funded and stalled it is the right tool.
A well-presented deal with a clear asset and approval can move in weeks rather than months through a private lender. A recent 60-unit approved development was funded in two weeks after two years of knock-backs.
No. There is no cost to refer a client, and broker fees are typically paid by the lender. Your client gets the finance handled, and you stay in the loop the whole way.
As a rule of thumb, three units or fewer is usually treated as residential lending. At four or more units you are into commercial territory, which means bigger deposits, shorter terms, pre-sales and tougher servicing. Knowing the threshold before you design around it can save the whole feasibility.
This is general information, not credit or financial advice. Eligibility, rates and terms depend on the lender and your circumstances.
Got a project, or a client, stuck on finance?
Send it my way for a straight answer. If finance is the thing holding the project up, let us see what is possible. No cost to refer.
Book a free chatMatty Teague, Mortgage and Finance Broker, Powered by Flint. Credit Representative 573962. Flint Group Pty Ltd ACL 488313.