PMA Acts Quickly to Provide Land Purchase Loan for Property Developer
Scenario
The borrower, with a background in property development and experience in small subdivisions in NSW, sought a loan to complete a land purchase, offering a vacant 788 sqm block as security.
Why PMA?
They could not get bank finance as financials were not yet prepared.
PMA Solution
The borrower had an opportunity to purchase a block of land for development at a very competitive price if they could settle it quickly. PMA provided the funding within a very short time frame and borrower was able to settle earlier than original settlement date on the contract of sale.
Details
Loan Amount: $342,000 (First Mortgage)
Property Value: $570,000
LVR: 60.00%
Term: 6 months prepaid plus 3 monthly extensions
Broker Commission*: 1.1% inc GST $3,762
Exit
Exit Strategy was to refinance into Construction Finance. They had already prepared documents to seek approval for a 4-unit development, which was to be lodged after settlement.
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