Flexible Construction Finance with No Pre-Sales?
Incomplete Project? Offshore Developer?
No Financials… NO PROBLEM!!

GCC low doc development finance is typically sourced via our private investor / lenders and is generally less stringent, requiring minimum or no pre-sales and they do not require financials.

Traditionally, property development projects have been funded by banks and other major financial institutions. The minimum requirements would be the borrower’s up-to-date financials and an acceptable level of pre-sales (or pre-leases).

Our Privately funded low doc construction finance is a viable and attractive alternative.

Key Advantages

  • No pre-sales required
  • No financials required
  • Will lend to borrowers with bad credit history
  • Fast turnaround and approval times
  • Will offer construction finance to owner builders
  • Will consider incomplete projects
  • Will lend to borrowers with limited project development experience
  • Will lend to offshore borrowers

What does this mean in practice?

The real advantages of private low doc construction loans, both tangible and intangible, flow from flexible pre-sale requirements.


If the borrower does not fit the square box requirements of a mainstream bank lender, the only real alternative is a private non-bank lender.


If the developer is at the early stages, then low doc private construction finance poses an interesting option, particularly in a rising market.


While it is obviously more expensive, there is the very real possibility that it may provide a significantly greater return to the developer; and within a shorter time period.


More profit, less fuss and faster turnaround

Opportunity Costs (of obtaining pre-sale Requirements for the banks)

  • Interest costs payable during the land bank period while waiting to achieve pre-sales targets
  • Holding costs during the land bank period
  • Upfront marketing expenses to achieve pre-sales
  • Upfront sales commissions to specialist marketers (sometimes as much as 10% upfront!)
  • No need to sell stock for a discount to achieve pre-sale hurdles (which will also impact the valuation!!)
  • Easier to sell stock at realistic prices once the project has started ‘turning dirt’
  • In a rising market delaying sales to the back end could result in a significant increase in ROI. (A 5% increase in GRV could lead to a 50% increase in ROI!!!)
  • Without needing to wait for pre-sale hurdles to be achieved, the developer can commence earlier, complete and sell the project earlier and turn over their equity much faster.

By utilising GRV-based low doc property development finance, a developer is sometimes able to borrow more money on their project, accordingly limiting the amount of equity they are required to commit.

The main benefit of using a GRV based low doc construction loan is that it provides the developer with the option of obtaining construction finance with minimum or no pre-sales. This is particularly significant in markets where the value is growing. In these circumstances the developer would prefer to sell the units at completion, so they can achieve capital growth on the properties during the building period.

Another important note about pre-sales is that typically banks will not extend development finance until the required pre-sales are in place. This will mean that the property developer will have to hold and pay interest on the land until the required pre-sales are obtained and confirmed acceptable by the bank. This obviously means extra costs to the developer. GRV based low doc project finance will allow the developer to start works without pre-sales, and thereby limiting holding costs.

Low doc construction finance proves that cheapest is not always the best option for property developers.

What our clients say:

I engaged Global Capital to assist my client with obtaining approval for development finance for 8 townhouses as none of the major banks were able to assist.

The client owned the land outright, however needed to finance all costs relating to the construction.
They were able to obtain approval consistent with the clients’ requirements (specifically no pre-sales) in a timely and professional manner. The approval was a big relief for the client as this project could release significant equity for them once completed.

Global Capital’s communication throughout my dealings with them were of honesty and sincerity and I would highly recommend the company to anyone if they require assistance in obtaining finance for property development.”

Damian McCormack, Finance Broker

Are you looking at buying a property or refinance an existing loan? Do you need construction finance for a property development? For a confidential chat call:

1300 011 211

Request a call back

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