Quick answer: A build-to-sell facility relies on settlement proceeds and may require presales. A build-to-hold strategy requires a credible completed-investment refinance based on valuation, rent, borrower serviceability and acceptable leverage. Decide the exit before construction finance, not after the market changes.
Questions borrowers, investors and developers commonly ask
- Can I tell the development lender I will sell, then decide to hold at completion?
- How do I know whether the completed project will qualify for investment refinance?
The exit determines the underwriting path
Sale projects focus on GRV and settlement coverage; hold projects also need sustainable rental income and a take-out lender.
Have a secondary exit
Market conditions change. A developer with enough equity and rentable stock has more options than one whose only feasible outcome is immediate sale at top-of-market prices.
Related guides
General information only. Commercial-property and development lending criteria vary by lender, transaction, security and market conditions. This is not legal, tax or investment advice.
Frequently asked questions
Can I tell the development lender I will sell, then decide to hold at completion?
A build-to-sell facility relies on settlement proceeds and may require presales. A build-to-hold strategy requires a credible completed-investment refinance based on valuation, rent, borrower serviceability and acceptable leverage. Decide the exit before construction finance, not after the market changes.
How do I know whether the completed project will qualify for investment refinance?
Sale projects focus on GRV and settlement coverage; hold projects also need sustainable rental income and a take-out lender.
Will every lender treat this the same way?
No. Commercial and development lending policy varies materially by lender and transaction.
Should I apply before the structure is tested?
For material or unusual transactions, test lender fit and the funding structure before creating formal applications.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
