Urgent Short Term Loans to Buy Distressed and Mortgagee Sale Property
Buy the mortgagee, receiver or run-down property on the seller's terms, and refinance once it is repaired or leased
Experts in strategic, short-term finance
Distressed property can offer good value, but the seller usually sets firm terms: a short settlement, no finance clause and the property sold as it is. We can fund the purchase in as little as 24 hours, so you can meet those terms with confidence.
We lend on residential investment, commercial and industrial property bought from mortgagees, receivers, liquidators and motivated sellers across Australia. The loan runs for 1 to 24 months while you repair, lease or resell the property.
Types of distressed purchases we fund
- •Mortgagee sales, where a lender is selling a borrower's property
- •Receiver and liquidator sales of company property
- •Run-down or unfinished buildings a bank will not lend on
- •Properties with vacancies or rent arrears
- •Off-market sales from owners who need to sell quickly
Why banks hesitate with distressed property
Banks prefer property in good condition with a steady income. A building that needs repairs, has no tenants or has an unusual history can take weeks to assess, and the seller will not wait. We value the property as it is today, and we look at your plan to repair, lease or sell it.
What the purchase loan includes
- •The purchase price, or the part a bank will not lend
- •Stamp duty and settlement costs
- •Repairs needed to lease or sell the property
- •Holding costs while the work is done
Meeting the seller's timeline
Before you offer. Send us the listing or contract and the seller's terms. We come back to you with an indicative offer within hours.
Inspection. Our in-house valuers inspect the property in its current condition.
Letter of offer. You receive it as soon as the terms are agreed.
Settlement. We can settle within 24 hours of you signing the letter of offer.
Details that speed up approval
- •The contract, or the sale terms if you have not signed yet
- •Any reports on the building's condition
- •Your plan and budget for repairs or leasing
- •Details of other property you can offer as security
Our loans for distressed purchases
- •First mortgage: over the property you are buying, valued as it is
- •Second mortgage: over another property you own, to add to the loan
- •Bridging loans: to repair and resell, or to settle before another sale
- •Caveat loans: fast access to equity for the deposit
Distressed purchase loan terms
| Loan feature | Detail |
|---|---|
| Loan size | $250,000 to $10,000,000 |
| Interest rate | From 9.7% p.a. on a first mortgage, from 11.95% p.a. on a second mortgage |
| Term | 1 to 24 months, interest only. Interest can be capitalised while repairs are done |
| Maximum LVR | 70% of the lower of the assessed value and the purchase price |
| Security | A first mortgage over the property you are buying, valued in its current condition, plus other property if needed |
| Settlement | From 24 hours |
How buyers repay us
Most buyers repay us by refinancing to a bank once the property is repaired or leased and can be revalued. Others sell the property after the work is done. We agree the plan before settlement and set the term to allow for the repairs and leasing.
A distressed purchase we funded
“Mortgagee and liquidator sales often come with a fixed settlement date and no room to negotiate. The property may need work, which puts many banks off. We value the property as it stands and look at the buyer's plan for it. If both make sense, we can settle within the seller's timeline.”
Gino Tabila
Associate Director
Frequently Asked Questions
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Case Studies
$400K Second Mortgage Repaid in Full After a Flexible Two-Month Extension
$1.8M First Mortgage Releases $980K of Working Capital for a Solar Business
$2.3M Second Mortgage Refinances an 18% Facility for a Glass Manufacturer
$800K Bridging Finance for Simultaneous Property Transactions in 48 Hours
$300K Second Mortgage for Dental Practice Working Capital in 5 Days
$700K Working Capital for a Technology Start-Up Settled in 72 Hours
$3M Working Capital for IT Business Expansion Settled in 2 Business Days
$1.9M Commercial Property Acquisition for Growing Doggy Daycare Business
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Other Urgent Loans We Fund
Each page covers one deadline: what we fund, what to send us and how quickly we can settle.