Presale Underwrites

Reduce or eliminate the need for pre-sales

As your underwriter, ASAP Finance will agree to purchase a certain number of properties from a developer at a mutually agreed price. If those properties are not sold by a specific date, ASAP Finance will settle the underwritten properties at the price agreed.

Rather than eating into profits by pre-selling properties at a reduced rate just to complete the project, you can sell at full market value thanks to your underwrite agreement with ASAP Finance. This is helpful for securing mainstream bank finance for your building or development project.

Underwrite Criteria
  • Minimum Amount: $5 million
  • Maximum Amount: $50 million
  • Underwrite Price: 65% – 80% of market value
  • Underwrite Fees: 4% – 5% plus brokerage
  • Property Type: Sections, houses, apartments, town houses and bare land

A trusted underwriter by New Zealand’s mainstream banks

Having worked with most of the trading banks in New Zealand, ASAP Finance is a known and trusted underwriter that banks can rely on to perform should the need arise.


What is a Presale Underwrite?

To obtain bank funding, developers are typically required to obtain ‘qualifying pre-sales’. Where the value of such presales is required to be at least 100% of the amount of lending being sought.  

Sometimes it is difficult for developers to achieve 100% presale cover, whether due to a slow market or simply buyer reluctance to purchase off-plan. Other times, developers specifically choose not to presell properties as they expect to achieve a higher price by selling closer to the completion of the project than by selling off-plan.  

In such circumstances, they may seek a ‘Pre-sale underwrite’ from ASAP Finance to still qualify for bank funding. A presale underwrite is an agreement whereby ASAP, as the underwriter, agrees to purchase a specified number of properties on completion of the development in lieu of an arm’s length purchaser in the event the property remains unsold on completion. This allows the bank to be repaid in full even if the property has not been sold. Underwrites are all about providing the bank with certainty that they will be repaid upon completion of the project. 

How does a presale underwrite work?

As your underwriter, ASAP Finance will agree to purchase the agreed number of properties from you (the developer) at a mutually agreed price for an underwrite fee. If those properties are not sold by the specified date, ASAP Finance will settle the underwritten properties at the price agreed.

Will my bank accept your presale underwrite?

We have strong working relationship with most of the trading banks in New Zealand. Our strong balance sheet and reputation make us a trusted underwriter among banks. 

Other Loan and Finance services

Construction and Development Loans

Development finance is our bread and butter. The bedrock of ASAP Finance is helping Kiwi developers with securing finance to get their development projects out of the ground, having reviewed thousands of transactions and facilitated over $3 Billion in lending to the NZ market.

Commercial & Industrial Loans

If you are planning on buying a residential or commercial investment property, then you need an investment property loan. Not all complex problems require complex solutions; our team of experienced lending managers will work with you to create a simple solution, specific to your needs.

Bespoke Investment Loans Settled Quickly

ASAP Finance is the ideal place for those needing to accelerate commercial acquisition time frames and maximise return on equity through tailored commercial property loans across NZ.

Bridging Finance Structured for Your Needs

ASAP Finance offers a wide variety of bridging loan solutions for borrowers all over New Zealand. Cashflow timing gaps are natural occurrences in business; bridging these gaps can be the difference between securing your next big project or sitting on the side-lines.

Land Bank Loans for Undeveloped Land

Undeveloped land rarely generates income, and we understand how hard it is to buy land with little cash flow. If you’re wanting to secure finance to purchase undeveloped land, you’ve come to the right place.