Why banks won't fund this
Banks struggle with joint ventures. They want a single borrower with clear liability. Joint ventures have multiple decision-makers and often complex equity splits. Banks avoid the legal and administrative complexity.
How specialist lenders look at this differently
Specialist lenders assess deals using a different framework:
- Joint venture structure is understood. Specialist mezzanine lenders regularly fund joint ventures. They know how to structure partnerships.
- Flexible guarantee structures. One partner can guarantee the mezzanine, or both, or proportional guarantees—lenders can adapt.
- Funding bridges partner equity differences. If partners contribute differently but want equal ownership, mezzanine bridges the gap.
Ready to explore your options?
Tell us about your situation and we'll show you what lenders can offer.
Describe Your SituationWhat a typical deal looks like
Illustrative example — not a real caseTwo partners identify a development site worth $2M. Partner A has $600K, Partner B has $400K. They want equal ownership (50/50) but capital is unequal. A bank will lend $1.2M (60% LVR) on the site.
Mezzanine lender provides $200K to Partner B at 9.8% p.a. for 36 months. Now: Partner A contributes $600K, Partner B contributes $400K + $200K mezzanine = $600K effective. Both own 50% equally. Bank loan is $1.2M. Total funding: $2M to buy the site. On development completion and sale, proceeds repay the bank first, then mezzanine, with remaining profit split 50/50.
What lenders want to see
For this scenario, lenders focus on:
- Joint venture agreement — clearly showing equity split, contributions, and repayment plan.
- Property valuation — independent assessment of JV property/development.
- Bank facility letter — proof the bank is providing first mortgage.
- Partner details — experience, capacity, backgrounds of each partner.
- Development plan — timeline, completion value, and exit strategy.
- Guarantee structure — who is guaranteeing the mezzanine (one or both partners).
When this might not work
Specialist lending has limits:
- Partners don't have a written agreement — mezzanine lenders will decline without clear JV documentation.
- Partner track records are weak — lenders assess both partners' experience and credibility.
- JV has disputed ownership or conflicts — ongoing disputes between partners will slow or block lending.
- Property value is uncertain — if the JV property valuation is unclear, lenders can't assess equity.
- Repayment strategy is unclear — if partners haven't agreed on how to repay the mezzanine, lenders decline.
Our panel includes specialist lenders who actively fund this scenario.
- $100K–$3M
- From 7% p.a. onwards
- 12–36 months (development timeline)
- Second mortgage on JV property
- Single borrower (one partner) or both guaranteed
- 10–21 days
- Yes — usual on JV completion/sale
- Unequal contributions needing equity alignment
Describe your situation and we'll match you with the best options.
How to get funding — Step by step
The process is straightforward:
- Step 1: Describe your deal. Tell us the property type, location, value, and what you need the funds for.
- Step 2: Get matched. Our AI matches your situation against specialist lenders on our panel.
- Step 3: Move forward. Contact your matched lenders directly. Settlement can happen within days.