PRE-DEVELOPMENT FUNDING

Client Scenario: This client needed a $100k finance boost to fund the pre-development planning and design of a housing project in Takanini, South Auckland. Time is always of the essence in property development. Anticipating delays with receiving an approval from the bank, the client approached us to get the project moving.

Merx Solution: As part of our pre-development funding offer, we were able to deliver the fast response that this client was hoping for. The deal was closed in just a week, from enquiry to ‘money out the door’. The $100k loan is at 60% LVR, to repay in six months: this will allow them to get their project articulated and ready for project funding, either with us or through a mainstream finance provider.

SECOND-MORTGAGE FUNDING

Client Scenario: In another recent scenario, we were approached by a client looking for $300k to fund development costs on a pre-sold land development opportunity. Despite the required funding being only 30% LVR ratio, they couldn’t satisfy their main bank’s CCCFA requirements in terms of servicing the loan – “it was just too hard!”. Looking at moving on with the work, they approached Merx for a faster solution. 

Merx Solution: We assessed that the client had a very low level of debt, and will view the sale of the property asset as a source of servicing and repayment. We provided the $300k second-mortgage funding that they required, which will enable them to complete work on the land and progress it to sale. With the funding taken care of, the client can now get on with the important parts of the project.