CLIENT SCENARIO #1
Why did this client need our funding: Equity release to support a new property acquisition.
Amount: $200,000
Industry: Property investment
Location: Auckland
LVR: 75%
Type of security: Second mortgage over residential investment property portfolio behind a main bank.
Path to repayment: Sale of investment property from the portfolio.
Why Merx: This client owned a portfolio of newly completed townhouses in a growing Auckland suburb. They needed to release equity from these properties to help fund a new investment acquisition. However, their bank couldn’t assist due to irregular income as they are both property developers and investors. By understanding their broader financial picture and their plan to repay the loan through asset sales, we were able to quickly support their new acquisition.
CLIENT SCENARIO #2
Why did this client need our funding: Settle the purchase of a freehold going concern business in the healthcare sector. They initially used cash savings and vendor finance but still needed to cover 40% of the purchase price to formally acquire the business assets and the property it operated from.
Amount: $655,000
Industry: Healthcare aligned
Location: Central North Island
LVR: 55% of the value of the property security.
Type of security: Commercial property security.
Path to repayment: Cashflow from the client’s business operation and sale of other investment properties that they have in their portfolio.
Why Merx: This client had been seeking funding from their bank for weeks. Things started well, but the bank ultimately declined, leaving them in a tough spot with a looming vendor finance repayment deadline. On their banker’s recommendation, they approached us. After reviewing their financial accounts and broader situation, we saw they’d made positive changes to their business. These improvements, once fully implemented, would likely position them well for refinancing with a bank after our initial advance. We also factored in their cashflow and the sale of other property assets in their portfolio, allowing us to structure a solution that reduced their borrowing and made their core business finances more bankable in the near term. By taking a broader view and acting quickly, we closed this deal in just one week.
CLIENT SCENARIO #3
Why did this client need our funding: This property investor needed to release equity from their portfolio to cover legal costs arising from a dispute with a neighbour over their portfolio properties.
Amount: $100,000
Industry: Property investment
Location: Auckland
LVR: 30%
Type of security: Second mortgage behind their bank.
Path to repayment: Cashflow from their business over time.
Why Merx: They chose us for our ability to make quick decisions and take a flexible, comprehensive approach to assessing their diverse income sources, including residential property rentals, offshore investments, and local investment income. The bank found this complexity challenging, complicating the process. Merx quickly understood their situation and finalised the loan within a week.