The Borrower has a background in property investment and development and specialises in ‘property flip’ investments. The aim of their business is to purchase property at a discount price that requires extensive internal work, renovate it and then sell it at a profit.
The Borrower had purchased a property requiring extensive renovation in Metford, a suburb of Maitland in NSW’s Hunter Valley. Maitland has been named as one of the fastest growing locations in NSW. This particular purchase is located nearby a new Stockland shopping centre development.
They weren’t able to get bank finance as their current financials didn’t demonstrate traditional bank servicing requirements.
The security on offer was the recently purchased property in Metford consisting of three bedrooms, one bathroom and a one car garage. A second property in Metford consisting of three bedrooms, one bathroom and two car spaces was also offered as security. This was another property flip project and was purchased in October last year, was renovated and was listed for sale at a much higher price than it was purchased for.
Private Mortgages Australia was able to lend the Borrower $220,000 at a 29.22% LVR and a 10.85% p.a. interest rate. The loan had capitalised interest for two months plus a monthly extension.
The Borrower was able to sell the already renovated property and extinguish the debt within five weeks of the loan being settled. A great result!
“Coming from a position where I thought a loan was impossible in the traditional sense, Private Mortgages Australia took stock of my situation and could see that granting a loan was a safe undertaking. Not only was I granted a loan, but it was urgent and PMA worked with us in a clear, efficient and speedy manner to meet my loan requirement as soon as possible. Working with Shanta through my broker and lawyer was an easy undertaking, as she was patient and communicative with what what needed and where we were at. To complete the process, Peter was helpful and great to deal with: the 8 week bridging finance loan was repaid in 5 weeks and I am well under way with my next house flip project. Thanks to PMA – I’ll definitely be a return customer!”
Rebekah Raymond, Sydney