It’s been a busy month for our team at Merx, with the launch of our new first-mortgage finance packages as well as new clients looking for second-mortgage funding and property funding solutions. Read on for a couple of real-life examples.
Moving forward, alongside our business and property finance packages, we are looking forward to the potential growth that the first-mortgage funding channel will bring. We’re already seeing a lot of good opportunities coming through.
And on this note, we are open to helping other wholesale investors take advantage of these opportunities. If you know anyone who might be interested in having direct investment in our business loans, please don’t hesitate to contact us. We’d be happy to hear from you.
Client Scenario: This client – a project management business owner – was looking at injecting equity into their business, to fund a new project opportunity. They wanted to leverage the equity built in their existing property portfolio, one owner-occupier home and one investment property. However, seeing that the bank was slow to respond, they approached us to put their project on the fast track.
Merx Solution: When business opportunities open up, we understand the need to proceed quickly. Within a week, we were able to deliver a $350k loan at 70 per cent loan-to-value ratio, advanced into their business, and backed by second mortgages over their two properties. Once again, a speedy, out-of-the-box solution.
Client Scenario: This client, a property developer, needed to settle the acquisition of a new plot of land, and also raise funds to complete a construction project that was already underway. However, mainstream lenders were reluctant to help due to a lack of pre-sales on the development project. To move the project forward, the client had to date been funding the development work from their own resources, but required more funds to keep work ticking over.
Merx Solution: As we mentioned in our previous eNewsletter, first-mortgage finance can be an effective solution for property developers. In this case, from a lender’s point of view, taking on a partially complete project required a certain level of flexibility. Rather than considering the two projects separately, we looked at the client’s portfolio of work in its entirety and decided to fund a total of $1.5 million (under 50 per cent LVR). $400k will help them fund the completion of their four-townhouse development and subdivision, while over $1 million will be used to acquire the new site and get a brand-new construction project started.