Property Finance Specialists

Transcription

1 Property Finance Specialists

2 About Us Property Finance Specialists. Have been in business since Offer competitive property finance solutions to clients unable to obtain funding from mainstream lenders. Small and efficient team offering fast and hassle free loan approvals and quick settlements.

3 Our Clients Not able to obtain funding from mainstream lenders. Has property to offer as security. Has short term funding requirements typically 6 months to12 months.

4 Our Clients Property Investors Developers Builders Self Employed No financials Adverse credit No NZ Income Recent Immigrants

5 Types of Loans offered Residential Property Funding. Sections. Development and Subdivision. Bare Land/ Rural. Commercial Property Funding.

6 Repayment Options Interest only. Capitalised Interest. Part Interest only. Principal and Interest. Lump Sum Repayment.

7 Why use us? Fast Approval: Because we are a small team and don t have to approach a separate credit committee for approvals (the decision makers are actively involved in the day to day operations) we are able to respond to applications within hours of receiving. Efficient Settlement: We have a close working relationship with our solicitor which allow us to settle loans as fast as 24 hours from the time of receiving the signed letter of offer. Ease of Transaction: Typically loan approvals are subject to minimal terms and conditions. Usually, a brief explanation of the funding proposal, details of the applicant, and a registered valuation is all that is required to issue a letter of offer.

8 How are we different? Construction Deals: We are one of the few finance companies still actively funding construction projects. Subdivision Funding: We are also actively funding subdivisions which is also an area that most finance companies tend to keep away from. Loan Size: Unlike some other finance companies which are restricted when it comes to the amount that they can lend (typically no more than $1million), we are able to fund large deals and have lent $4million on a single deal recently. No Early Repayment Fee: We do not charge any early repayment fee (subject to 30 days notice). Most finance companies will charge a couple of months interest in case of early repayment.

9 Lending Criteria Minimum Loan Amount: $150,000 Maximum Loan Amount: $5,000,000 Maximum LVR: Maximum Term: Security: Location: 75% (Depending on the type of property) Up to 12 months (Rollover possible) Registered 1st Mortgages only Throughout New Zealand (Urban Areas Preferred)

10 Interest Rate and Fee Structure Interest Rate: Between 11% to 13% ( The interest rate depends on a variety of factors such as prevailing market conditions, strength of security offered and the credit risk associated with the applicants.) Application Fee: 2% plus Brokerage (Typically 1%) Legal Costs: About $1,500 (Including GST plus disbursements, for a Standard Loan consisting of a single property as security.)

11 Interest Rate and Fee Structure For Consumer Loans* Interest Rate: 13.75% 14% (The interest rate depends on a variety of factors such as prevailing market conditions, strength of security offered and the credit risk associated with the applicants.) Application Fee: $900 $1,000 plus Brokerage (typically 1%) Legal Costs: About $1,500 (Including GST plus disbursements, for a Standard Loan consisting of a single property as security.) * Typically owner occupiers.

12 Interest Rate and Fee Structure Example Loan Size Less Application Fees Less 1% Less Legal Cost Cash in Hand Standard Loan $500,000 $ 10,000 $ 5,000 $ 1,500 $483,500 Interest : 13% Term 12 Months Type: Interest only Consumer Loan $500,000 $ 1,000 $ 5,000 $ 1,500 $492,500 Interest : 14% Term 12 Months Type: Interest only

13 Examples

14 Example 1 Mortgagee Sale Rescue Client Profile: Business man and property investor who owns multiple properties in Auckland and other places. His primary business is operating rest homes. Circumstances: He had a falling out with his bank and although he was meeting his commitments, the bank was not keen on renewing his loan facilities. The client had also sold down a lot of properties and reduced his debt but the bank was still not willing to extend his facility and were going to list his properties for sale if the loan was not repaid. He had also accumulated 4 defaults on his credit report. Security Offered: 5 Residential properties in Auckland, 3 Residential Properties in Dargaville and 1 Industrial property in Auckland Loan Amount: $1.043 million Type: Interest only LVR: 65% Loan Term: 6 months Exit Strategy: Repay the loan by gradually selling down the properties.

15 Example 2 Commercial Property Refinance Client Profile: Businessman with retail interests who also develops commercial property. Circumstances: The existing facility with the bank had expired and needed to be refinanced. He recent financials weren t very good and he had accumulated two defaults and a judgment and the bank was not keen to rollover his facility. Security Offered: Two commercial buildings in Auckland CBD. Both the buildings were not in the best condition and only partially tenanted but were well located and likely to be well leased with a bit of renovation. Loan Amount: $1.96 million Type: Interest Only LVR: 65% Loan Term: 12 months Exit Strategy: To complete renovation, fill up the vacancies and sell once the buildings are fully leased.

16 Example 3 Working Capital Client Profile: Full time mother and property investor. Circumstances: The client had an unencumbered property which she wanted to raise money against for renovating some of her other investment properties and for working capital. The bank was not willing to lend because she was not currently employed and already had a number of investment properties. Security Offered: One standard residential property in South Auckland Loan Amount: $180,000. Initial cash advance was $103K and the balance was kept aside as a working capital facility that the client could drawdown depending on her requirement. LVR: 70% Type: Interest Only Loan Term: 12 months Exit Strategy: To refinance or repay by selling down property.

17 Example 4 Land Bank Client Profile: Farmer and Businessman as partners who are also property developers. Circumstances: The client had a large block of land on the outskirts of Hamilton city. This land was zoned for future urban development although the current zoning was rural. The clients had subdivided the land, built a industrial building on one of the lots and sold that off. They required funding against the residual lot as their intention was to hold it long term but the current lender wanted the facility repaid. Security Offered: Rural Block in Hamilton Loan Amount: $1.4 million. LVR: 60% Type: Part Capitalised Interest Loan Term: 12 months Exit Strategy: To refinance or repay from the sale of other properties.

18 Example 5 Partially completed subdivision Client Profile: Property Developer. Circumstances: The client had purchased a sub dividable property in North Shore. He had obtained consent to build a house on the surplus land and obtain two separate titles. Construction was almost complete. The client required funds for working capital but the bank was not willing to give him a top up till titles were out and Code of compliance issued. Security Offered: One completed house and one brand new almost complete house on a single title. Loan Amount: $680,000. We refinanced the existing mortgage and gave him funds towards working capital and retained only $20K which would be advanced on issue of titles and CCC. LVR: 75% Type: Interest only Loan Term: 12 months Exit Strategy: To sell both houses on issue of CT s

19 Example 6 Subdivision Finance Client Profile: Businessman and property developer. Circumstances: The client had purchased a sub dividable block of land in Whangaparoa. The land was part of a 15 lot subdivision to be done in two stages. Stage 1 comprising 7 lots was complete and our client was buying the residual block to complete the balance of the 8 lot subdivision. Three of the lots were pre sold. The banks had no appetite for this type of funding. Security Offered: 3.6 ha rural/residential block Loan Amount: $950,000. This amount comprised of an initial advance of $388,000, capitalised interest of $100,000 and a subdivision facility of $462,000 to be advanced on progress payment basis. LVR: 60% Type: Capitalised Interest Loan Term: 12 months Exit Strategy: To repay the loan from on settlement of pre sales.

20 Contact us: Adarsh Patel (Director) Ph: Mob: Darpan Patel (Director) Ph: Mob: Parash Sarma (Lending Manager/BDM) Ph: Mob: Office: Level 2, 1 Balm St, Newmarket, Auckland Fax: Website: info@asapfinance.co.nz

21 Thank You