Back to Transactions
Equity release on unencumbered property and acquisition of new site
The Challenge
Borrower was referred by his accountant to assist with a fast settlement timeframe. The borrower had purchased at auction and needed to arrange finance and settlement within a short period. The borrower had limited experience as a property developer in his own right, but had project managed several developments for a large development company in the preceding 5yrs. Borrower had secured one site and wanted to jump on the neighbouring site opportunity so he could roll from one development to the other.
Our Strategy
We were able to quickly understand the borrowers goals and confirm his capacity to complete the projects.
Provided certainty to the borrower with fast credit approved terms
Provided two tranches of funding to enable refinance of the first block to a construction loan without early repayment penalties
The Outcome
Borrower was comfortable we could deliver and understood what he was trying to achieve
Fast turnaround and deployment of funds for investors
What made it a good credit risk?
Borrower with good acumen to complete the project
Relatively straight forward loans against properties in highly sort after Gold Coast location
Low LVR across 2 properties
Clear exit to development loan
As Is' Valuation
$3,200,000
Loan
$1,634,000
LVR
51%
Target Investor IRR
9.94%
Location
Gold Coast QLD
