SMALL TOWNHOUSE DEVELOPMENT

Client Scenario: This client was looking at purchasing land in South Auckland, to proceed with the building of six townhouses. Seeking funding through mainstream lenders would have entailed a lengthy and more complex finance approach, so the client – who had worked with us in the past and knew how we operate – decided to contact us first to take his project forward.

Merx Solution: As we detailed in our article this month, our approach is tailored to the needs of smaller property developers looking for simplified, cost-to-complete funding solutions taking a project through to completion. Following our assessment of the quality of the project, we were able to provide funding to purchase the land at 60% LVR and then $2.2 million to progress the project. On completion of the project, the LVR will be under 60%. The interest rate on this particular project was 7.99%, with fees on top of that. Thanks to our funding support, this small property development is now underway.

EQUITY RELEASE

Client Scenario: Here is another return client, active in the construction sector and looking at making an investment in his existing business to fund some growth. In light of our previous experience working together, this client knew he could trust us to structure the right loan to fit his requirement and act quickly to take advantage of a time-critical opportunity.

Merx Solution: Having helped this client before, we were confident in their business and ability to get things done. After reviewing their new project, we were able to provide a short-term $150k loan at 70% LVR and 14.99% interest rate, secured by a second mortgage over their existing property. The loan is set to be repaid within three months, upon the sale of one of the properties in their portfolio.