Funding for property development
Our client, a property investment JV, was looking for funding for a 64 lot residential land subdivision in a major regional NSW town which was to be built over two stages.
They had approached their existing bankers however, this major financial institution was unable to assist as they wanted pre-sale cover over the entire subdivision rather than on a per-stage basis.
Our client believed this was unreasonable and approached Red Knight Financial Services to help find finance which would allow them to start construction without any pre-sales. Red Knight facilitated an approval for a land subdivision loan through a private, non-bank lender which was able to cover the cost of the entire subdivision as one stage.
Construction on stage one could commence with no pre-sales required however, the second stage could only commence once 50% of stage one had been pre-sold.
Facility Amount: $4,500,000
LVR: 65% of GRV
Unsecured lending for medi-professional
Our client was a pharmacist in the final stages of negotiation to purchase a CBD based pharmacy, but the bank would only extend to 70% of the purchase price, leaving a shortfall of $250,000 of the total purchase price.
As the settlement was fast approaching, Red Knight Financial Services was able arrange an unsecured loan – which was approved in 24 hours – and funded just four days later which allowed the sale to go through and the pharmacist was able to proceed with no penalty.
Facility Amount: $250,000
Interest rate: 14% unsecured
Low Doc commercial finance
We were approached by a client operating a successful business in a major regional Queensland town who was looking to buy their current premises which was in the hands of receivers. The customer’s financials weren’t up to date which made borrowing from a major bank problematic.
Working with their accountant, we were able to secure a low doc loan quickly, so they could take advantage of the opportunity and settled within a month. Prior to securing the premises outgoings for rent were over $270k however, loan repayments were approximately $150k so not only are they saving on rent but they are working towards a capital gain as well.
Amount borrowed: $1.5m
LVR: 70%
Rate: 6.5%