Case Studies 2009

 

 

 

 

 

 

 

 

 
Construction Funding – Lite Doc
Our client had entered into a contract to purchase a DA approved development site in Marrickville in inner west Sydney’s inner west from a related party for $2.1M with a ‘as is’ valuation of $2.8M (the difference representing the clients equity in the site). Our client also needed to refinance a residential property in Gladesville worth approx $2M with an existing loan of $1.5M which was in arrears.

As our clients had limited additional equity to contribute so a JV partner was arranged to contribute additional equity for a profit participation arranged directly with our client.

Solution
GCC facilitated an approval for a loan through a private non-bank lender based on 65% of GRV with no presales and no financials.

 

 

 

 

 

 

 

 

 

 

 

 

Specialised – Purchase – Lite Doc
Our client purchased a specialised property located in Laverton, Victoria for an agreed price of $590,000. The client believed that the valuation was closer to $900,000 and required 60% of the valuation or 90% of the purchase price.

The property is zoned residential but is currently used for commercial purposes namely a specialised milk distribution facility with loading docks, cool rooms, carports etc. Also located on the property is an underground diesel tank which was no longer in use.

Our introducer tried various residential and commercial lenders however due to the specialised nature of the security they were unable to assist and time was running out to settle when GCC was approached.

Solution
GCC arranged a valuation which came in at $875,000. GCC settled the loan via a private non-bank lender based on 60% of the valuation.

 

 

 

Construction Funding
Our clients owned a property in Doncaster Victoria which they obtained DA approval to build a three level commercial residential building containing two (2) medical suites, four (4) apartments and basement car park. The clients intention is to retain the building for long term investment purposes. As there were no pre-sales or pre-leases in place the banks which the clients approached were unwilling to assist.

Solution
GCC facilitated an approval for a loan through a private non-bank lender based on 65% of GRV with no presales.

 

 

 

 

 

Commercial – Refinance - LoDoc
Our clients were looking to refinance their existing debt with a major bank of $575k and releasing cash to assist in the purchase of a new investment property. The property is a warehouse style property divided into 4 separate tenancies. Two of the tenancies are occupied by the borrower with the other two subject to month-to-month tenants without formal leases. Financials were unavailable. The client intends to retire in two years time and will sell the security property at that time to clear the debt.

Solution
GCC settled a facility through one of our non-bank lenders based on self cert income with bank statements as supporting information confirming cash-flow.

 

 

 

 

Commercial - Refinance - Lite Doc – 2nd Mortgage
Our client had an existing debt with a mortgage trust which was in arrears for the last several months and as a result needed to refinance. Due to the loan arrears a straight refinance at 72% LVR was not possible in the current market even though their cashflow position had recently improved.

Solution
GCC facilitated an approval through a private lender for a 2nd mortgage facility which reduced the existing debt to 65% which was acceptable to the existing lender for a period of 12 months by which time existing loan statements will be in order allowing a straight refinance to be secured by GCC.

 

Refinance - Lite Doc – Residual Stock
Our client recently completed a residential development in Sydney’s North Shore. The existing lender was not willing to extend the facility.

The borrowers financials did not demonstrate debt serviceability and the units were vacant so a lite doc solution was required. The client was in the process of selling the units and wanted no exit fees as each unit sold.

Solution
GCC facilitated an approval through a private lender for 60% LVR with a competitive rate with no exit fees.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Our client required urgent funds to complete the purchase of a development site in Lara Victoria. This property was contracted for purchase in December 2006 for $2,650,000. However due to various contract extensions the settlement figure was revised to $2,809,550. During this period our client obtained an approval for 201 dwellings distributed around a central community building with associated leisure facilities.

 

As the purchase had not been completed on schedule the vendor was becoming extremely frustrated with the constant delays and extensions (over 2 ½ years) and intended to cancel the sale which would have meant that our client would have lost their deposit and considerable working capital invested into the deal. With literally days left the borrower contacted GCC for a solution.

 

There was a valuation in place by a major valuer however they would not assign their valuation to a private non-bank lender.

 

GCC settled a loan through one of our non-bank private lenders who approved the transaction and without ordering a new valuation through their panel valuers.

 

 

 

Our client was looking to refinance an existing facility for a backpacker accommodation in central Queensland to assist with a divorce/property settlement. The Borrower had credit impairments due to the divorce, existing loans were in arrears and financials were not in order.

 

GCC facilitated an approval through a non-bank private lender who approved the transaction with an accountant’s letter and 6 months interim figures demonstrating serviceability.