Multiplex Development Hub · Sub-guide 3 of 3
Getting to lockup without draining your capital.
Most small multiplex projects that fail do not fail because the numbers were wrong. They fail in the stretch between buying the lot and drawing on a construction loan, when the bills are real and the financing has not arrived. This page is about that stretch.
Last reviewed August 2026
How much of your own money does a multiplex need before financing?
On our projects, a developer typically needs under $100,000 of their own capital to carry construction through to lockup. The reason is that our supplier and trade network works on deferred payment terms, so most of the construction cost in that period is not billed to the developer as it is incurred. This is Icon's own figure on our own projects, it covers construction cost only, and it excludes the land. Land remains yours to acquire and finance, and in Greater Vancouver it is almost always the largest number in the project.
To be precise about what this is. We are a builder, not a lender. We do not provide financing and nothing here is a loan. What we have is a network of suppliers and trades willing to work on deferred terms on projects we are building. Whether that applies to a given project depends on the site, the schedule and a review at the outset, so treat it as something to discuss, not a commitment.
The gap nobody budgets for
A first-time multiplex developer usually plans for two things: buying the land and building the project. Both get modelled carefully. What gets missed is that a substantial amount of spending sits between them, and almost all of it is due before a construction lender will advance anything.
Lenders want to see a permitted project, a fixed-price contract with a credible builder, and often work already in the ground. Every one of those prerequisites costs money to produce. So the developer pays for the permit-ready project out of pocket, and then finds that the cash they had earmarked as contingency has already gone.
Design and consultants
Architect or designer, structural engineer, geotechnical work where the site needs it, energy modelling and a survey. All payable during design, long before there is anything to draw against.
Permit and municipal charges
Building permit fees and the development and servicing charges that attach to added units. Typically due at issuance, which is precisely when nothing has been built.
Demolition and early site work
Taking the existing house down, abatement, disconnections and site setup. Real construction spending that happens before most lenders consider the project underway.
Foundations and early structure
The most capital-intensive stage before lockup, and the one where a project that has run out of cash visibly stops.
Carrying costs on the land
Interest and property tax on the lot from the day you buy it. This one runs whether the project is moving or not, which is why a stall is expensive rather than merely frustrating.
A stalled project in this position is the worst outcome in development. You own a lot, you are paying interest on it, you have spent the design and permit money, and you cannot build. Selling out of it usually means selling at a discount, because any buyer can see exactly why it is for sale.
How a builder's supply chain changes the number
We have worked with the same suppliers and trades for years. Because those relationships are long-standing and the work is continuous, much of the material and labour cost through to lockup can run on deferred terms rather than being invoiced to the developer as it is incurred. The cost does not disappear. It moves later in the project, to the point where construction financing is in place.
For a developer, the practical effect is on the shape of the capital requirement rather than its total. The same project costs the same money, but far less of your own cash is committed during the riskiest phase, and that phase is the one where a project either proceeds or dies.
It also changes how the return looks. Return on capital is a function of how much you commit and for how long. Shortening the period your own money sits in a project improves that return even when the total cost of the project is identical. That is the whole argument for building quickly and for not tying up equity early.
Why this is not something every builder can offer
A supplier extends terms because they are confident the project will complete and they will be paid. That confidence is built over years of continuous work and settled invoices, and it is specific to the builder rather than transferable. It is also the reason the arrangement is reviewed project by project: our suppliers are taking a position on the work, so a site or a schedule that concerns us concerns them too.
If a builder offers something similar, the sensible questions are how long they have worked with those suppliers, what happens if the project runs past the expected completion date, and whether the deferred amounts are documented in the construction contract or exist only as an understanding. Get the answer in writing.
How the three pieces fit together
Cost, schedule and capital exposure are the same problem seen from three angles. A build that costs less per square foot, completes in about six months, and requires little of your own cash before financing is not three separate advantages. It is one: less of your money, committed for less time, against a known number.
- What it costs to build, hard costs, soft costs and the all-in number against the published benchmark.
- How long it takes, the construction sequence and what adds months to it.
- Back to the hub, including what actually fits on a Burnaby lot.
Common questions
How much money do I need before construction financing arrives?
On our projects, a developer typically needs under $100,000 of their own capital to carry construction to lockup, because our supplier and trade network works on deferred terms. That figure is Icon's own, covers construction cost only, and excludes the land, which is a separate and much larger number.
Why do small multiplex projects stall before construction?
Because design, consultants, permits, municipal charges and early site work all fall due before a construction loan funds. Developers who budgeted for land plus construction, without budgeting for the gap between them, run out of cash while holding a permitted lot they cannot build on.
Does Icon Projects lend money to developers?
No. We are a builder, not a lender, and we do not provide financing. What we have is a supplier and trade network willing to work on deferred payment terms through to lockup on projects we are building. That is trade credit within our own supply chain, not a loan to you.
Do I still need my own land equity?
Yes. The land is yours to acquire and finance, and in Greater Vancouver it is usually the largest line in the whole project. Nothing on this page reduces that. What it addresses is the construction spending that sits between owning the lot and drawing on a construction loan.
Is the deferred-terms arrangement guaranteed?
No. It depends on the project, the site, the schedule and a review at the outset, and it is not something we can promise before looking at a specific deal. We would rather tell you at feasibility that a project does not suit the arrangement than discover it halfway through a build.
How does reaching lockup faster improve returns?
It shortens the period your own capital is committed and unproductive. The less time money sits in a project before the loan takes over and before units can be sold or rented, the better the return on that capital, even when the total cost is unchanged.