What a construction lender needs
- Development approval or a clear path to it
- A fixed price building contract with a builder the lender will accept
- Feasibility showing costs, sale or end values, and margin
- A quantity surveyor's report for larger jobs
- Presales on bigger projects with some lenders
- Your experience, or a team around you that has done it before
Bank or private funding
Banks usually offer the lowest rate but lend a lower share of costs and can take longer to approve. Private lenders move faster, lend more against the land and finished value, and charge for it. Many projects use both: a private lender for land and approvals, then a bank or non-bank for the build. Nick has placed private debt for construction where the banks said no, and will tell you plainly when the cost of private money outweighs the benefit.
After the build
If stock does not sell before completion, a residual stock loan pays out the construction lender and gives you time to sell or lease. We plan for this at the start so the exit is not left to the last month.