Some recent scenarios we have funded demonstrate our depth of expertise and what’s lurking beneath the waters:
(1) Part-completed development with an insolvent builder – $4M 1st mortgage facility
While Humpty hadn’t fallen off the wall, there were cracks everywhere with a lot of moving parts. Our in-house expertise allows us to assess the risk where others could only see obstacles. Working with the Administrator of the building company and the developer a deal was crafted to get the project moving.
(2) Knock knock no one is home – $1.3M 2nd mortgage facility
This opportunity came to us directly by a borrower who approached us with a refinance opportunity as their private loan was 1 week away from falling due. No problem we thought and we turned it around in 24 hours and we were ready for settlement.
So this is where it gets just a little predictable by some in our industry. The borrower then spent the rest of the week trying to get a payout and when it finally arrived you guessed it the day after the term end date, a receiver was appointed and costs and payouts started to sky rocket.
We increased our offer, paid out the lender, retired the receiver and will leave the post deal retribution in the borrower’s hands.
For the uninitiated, the private funding world is a small industry so ask around for who is who in this zoo before you dive in.
Keen to know more? CLICK HERE to find out more about:
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