Business Establishment- Wallacia, NSW
In this case study we look at how Private Mortgages Australia was able to assist a business owner who required funding to establish the business with little or no cash flow in initial stages, but a strong property portfolio.
The Borrower has a background in property investment and operates a soil quarry.
The purpose of this loan is to assist with the restarting and operating costs of the soil quarry, obtaining a new operating license from the EPA and completion of building works.
The Borrower couldn’t get bank finance as their financials do not satisfy traditional banks’ servicing requirements.
The Borrower offered three properties to secure the loan including two unencumbered properties in Boggabri, a town in north-western New South Wales. These properties were a serviced apartment complex comprising of thirteen one bedroom apartments and a Commercial Office with three adjoining vacant lots. The Borrower also offered the 14ha vacant parcel of land with permits to operate as a sand quarry in Wallacia, a western suburb of Sydney.
The exit strategy was to refinance to the bank.
As the Borrower had equity in their security properties, PMA was able to arrange the loan using our Equity Release (First Mortgage) Solution.
Details
Security Property Valuation: $7,485,000
Loan Amount: $2,028,000 (First Mortgage)
LVR: 27.09%
Term: 12 months prepaid plus 3 monthly extensions
