PMA delivered a smart funding solution for an off-market property purchase.

Scenario

The borrowers, experienced in property development, sought funding to complete the purchase of a residential property through an off-market opportunity with a seller personally known to them. An independent valuation completed within the past 30 days was reassigned, enabling the borrowers to secure the property at a price below market value.

The security offered was a residential property located in Richmond, Melbourne, on a 225 sqm block, featuring two bedrooms, one bathroom, a lounge, porch, patio, balcony, and a lock-up garage.

Why PMA?

Traditional bank finance was not an option due to the borrowers’ newly incorporated company and the short-term nature of their funding requirements.

PMA Solution 

PMA provided a very quick approval (5 days) which enabled the sponsor access to the settlement funds to complete the transaction.

Details

Loan Amount: $945,000 (First Mortgage)

Property Value: $1,350,000

LVR: 70.00%

Term: 6 months prepaid plus 3 monthly extensions

Broker Commission*: $10,395 (Incl GST)

*with no clawback

Exit

The planned exit is the sale of the secured property or another commercial asset owned by the borrowers to fully settle the debt.