Residual Stock
Residual stock loans are beneficial for property developers in Australia. These loans are especially designed for those real estate developers who have finished a development project and want to keep some of the remaining dwellings or units, rather than selling them. The reason behind it is that they want to pay the balance amount of their property development loan.
There are various other reasons why some property development companies want to hold some of their asset or stock. The major reason is that they want to sell at a later date when they find more promising market conditions, which help them maximize their ROI or return on investment.
On the other side, some developers may want to borrow some more time and it is a more common situation for property developers who are making plans for more development projects for the future. At this point in time, residual stock loans come in a handy option. So, if you are ready to hold some chunks of your property development project, then you must pay a visit to Commercial Construction Loans where you can consider having a residual stock loan for higher returns in the future.
What are residual stock loans?
Residual stock financing at Commercial Construction Loans can help you with a property development loan refinanced in the form of a short-term loan. The best thing is that residual stock can be held for a more favorable time. Of course, separate finance can be arranged for each dwelling or unit, rather than a large single option covering all residual stock. When you sell each unit, that particular facility will be sold and then closed. As with all phases of a property development loan, different lending institutions can have very different terms and conditions. Generally, though, residual stock loans last for 6 to 18 months with an LVR of 40%-70%.
In some cases, residual stock loans can be used to maximize the cash-out today for the next project. No matter what your reason is to apply for a residual stock loan, just approach us at Commercial Constriction Loans and discuss your needs.
How to apply for a residual stock loan?
Once you have complete clarification of the residual stock loan, it means you are ready to take a step ahead to apply for it. There are simple steps you need to follow when it comes to applying for a residual stock loan in Australia. These steps are:
• First of all, fill out an application form or talk to our representative who can explain everything in detail
• Once we receive your application, we initiate preparing an Indicative Letter of Offer, which clarifies an indicative interest rate. After accepting the offer, we charge a small amount of assessment fee to cover the searches our team does in due diligence.
• After finishing our due diligence, our team will send you a formal Letter of Offer. You must read the terms and conditions and then sign the loan documents carefully. Once the documents are signed and drawn up, they are sent to the borrower’s solicitor.
• Upon the arrival of the fully executed documents of the residual stock loan, the legal costs, the approval fee, and the prepaid interest are deducted from the residual stock financing and you will get the balance amount.
We work on this lending process in just a few working days after getting all the required information from your side. We guarantee you that you will receive money in less time.
How can we help you with residual stock loans?
Commercial Construction Loans is a leading commercial loan provider in Australia with a strong reputation in the market. We have a variety of commercial loans to offer based on the varied needs of real estate companies, developers, investors, etc. When it comes to the Residual Stock Loan, it allows developers with completed but unsold stock in their project development to refinance the unsold stock. This is how they get more time to sell those stocks or leverage the equity for their upcoming development project in Australia. Our professional team understands the challenges and issues property developers may face during the property development project. This is why we offer residual stock loans, which are tailored to assist developers in heightening their investments and projects.
Want to obtain residual stock finance?
Are you ready to get residual stock finance? At Commercial Construction Loans, we can assist you in securing the residual stock loan you need for serving any purpose. We have maintained years of strong relationships with thousands of trusted lenders from non-bank lenders, banks, and managed funds to high-net-worth people and family offices. So, our professionals will be your side, you can get a trustworthy lender, who will offer a fair interest rate, and want to do business with somebody suitable for your profile.
To get an idea of your residual stock finance options, you can have a word with some of our professional team members or book a session with us now.