The book
Insights into the world of Australian Construction Finance
About the book
Regardless your next project being your very first or your 21st, the insights provided in this book can help save you time and money.
Have a plan and do your research
Every project is different, so it’s critical that you understand the market expectations and can clearly and succinctly explain it to your financier.
Set yourself up to succeed by knowing who is buying, how you will differentiate your product and how you can leverage those points of difference to steal a march on the competition and secure contracts. Ask yourself, does my product mix, design and finishes meet the market expectations and have I got the price points right for my buyer demographic?
In short, researching and understanding your target market is one of the critical steps towards securing a strong sales performance to impress your financier.
When is a finance 'approval' reliable?
The lending market has never been more challenging with the constantly evolving landscape of new lenders and changing loan requirements. Even experienced developers, with a proven product in a desirable location, can sometimes struggle to get their deal approved, on terms they would like.
So, your application has been lodged and you have received correspondence which appears at first glance to be an offer of finance. But how reliable is that document? Chances are there are numerous hurdles to be negotiated right up to the point of settlement. It pays to understand how to navigate these requirements, how to be flexibile or find alternatives to ensure you get to the starting line in good shape.
Funding table comparison
Bank and non-bank lenders can have differing positions regarding loan ratios, and in some cases even calculate these ratios differently.
Most non-bank lenders are so-called gross realisation (or ‘asset’) lenders and the main criterion for them is that the loan to value ratio (LVR) does not exceed 65% of the ‘on completion’ value of the project.
Banks are prepared to extend to a maximum LVR of 65%, but they may impose a further limit to ensure they do not fund in excess of 70% of the total development cost (TDC) of the project. As they will opt for the lesser of the two this can result in a significant difference between both approaches.
Get constructive
Giving back to the industry that has recognised Dan as a respected leader.
Constructive Finance is an example of Dan Holden’s enthusiasm and willingness to share what he has learnt with others who are keen to learn and expand their horizons.
Having identified that there was a gap in the market for a text that would both educate but also be a ready reckoner for the industry, Dan set about creating something for everyone with all his usual passion.
Achieve better finance outcomes
Complete property developments more efficiently
More certainty of funding
Learn how to package a deal up for a lender
Ron Bakir
CEO | Homecorp Group
Matt Campbell
Managing Director | KYABEL Developments
Ron Bakir
CEO | Homecorp Group
About Dan Holden
Dan Holden breathes property day and night.
It’s not about just making money, although the rewards of success never hurt. Dan literally loves the entire development process and sharing the knowledge he has developed over the past 20 (?) years to help others with a similar passion.
From his beginnings as a project director, to working for the country’s largest brokerage group, starting his own HoldenCAPITAL brokerage business which is now Australia’s largest specialist construction brokerage operation with offices in Brisbane, Sydney and Melbourne, and more recently creating HoldenCAPITAL Partners delivering specialist finance to the development sector.
A recognised innovator
Dan has gained significant accolades for his contributions to the industry.
#1 Commercial Broker in Australia in 2015 and 2016, #1 Commercial Broker in Queensland 2016, a 2015 Young Entrepreneur of the Year finalist and having HoldenCAPITAL recognised as BRW Fast Starter in 2015.
Dan was awarded #1 Commercial Broker in Australia 3 years running, awarded top 100 Young Entrepreneur for Australia 2 years running and having HoldenCAPITAL recognised as BRW Fast Starter in 2015 and BRW Fast100 in 2016.
HoldenCAPITAL has brokered project debt to fuel over $4billion worth of projects and the lending arm, HoldenCAPITAL Partners has deployed over $200million raised from its investor base via its fin-tech platform to fund new projects since 2017.
