Minimum or no pre-sales
No pre-sales construction finance is typically sourced from non traditional lenders and is generally less stringent, requiring minimum or no pre-sales and they usually don’t 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 before the bank releases the funds to start construction
No pre-sales construction finance can be a viable and attractive alternative.
- no pre-sales required
- fast turnaround and approval times
- will offer construction finance to small Builders
- will lend to borrowers with limited project development experience
- no upfront marketing expenses to achieve pre-sales
- no upfront sales commissions to specialist real estate marketers
- easier to sell stock at realistic prices once the project has started