THIS COULD BE THE
SHORTEST MOST PROFITABLE PRODUCT BULLETIN UPDATE YOU'VE EVER READ,
OR
YOU MIGHT LIKE TO
READ MORE
Genuine
"private" first mortgage funds available ("transition"
finance TO IMPROVE
AND/OR DE-STRESS BORROWER'S ULTIMATE OUTCOME as below)
- Medium term 6 to 12 months
- $0.40 M to $2.00 M (larger loans available if separate, independent titles involved)
- Pricing specifically related to the nature, LVR, location, urgency (and especially CMV for the proposed security in the event of default, though generally in the 11 %pa to 15 %pa range
- LVR - again dependent on the above factors, but generally up to 65% to 70% for non-code residential (though have done up to 75% on a blended" rate). Though residential preferred, will consider commercial (non-owner occupied), and land (at reduced LVR)
- No rural. Major population centres only. Please consider this before calling.
- Each deal is a clean sheet.
- The end.
- Phone now.
Or read
on.
What is “Private Mortgage Finance”?
Private lending
is fundamentally "the oldest form of mortgage lending". The borrower
and lender have a direct, personal relationship. It is the lender (or his
nominee) who is the mortgagee and who holds the security. With financial
institutions, there is no such direct relationship in the sense that the
institution makes loans using funds which have either been pooled for the
specific purpose of making that loan or raised from the capital markets,
deposits by investors or other security instruments. Little Rock operates in
the private lending market in its simplest form, where one investor provides
the capital for one loan. We collect and present material and information to
private investors in a format where the investor may complete due diligence and
make an informed decision as to whether or not to make a loan. By it’s
nature, private lending is usually a transitional or “bridging” loan
alternative. It is a supplement to institutional funding for reasons varying
from urgency to relief from a matured institutional facility where there may be
left over development stock. There may be many reasons, and each proposal is
treated as a clean canvass. Generally, benefit
to the borrower and an exit strategy
is of key importance.
Little Rock - Transition Finance
Our purposes is to supplement,
not compete with, the full spectrum of first mortgage financiers
Do we have funds available? Most
definitely.
Do we presently have sufficient
(sensible and commercially realistic) proposals to utilise all of those funds?
Most definitely NOT. Contact us to discuss your scenario.
Little Rock is a Mortgage
Manager, dealing directly with genuinely private first mortgage investors. We
represent medium term lenders - 6 to 12 months, and provide a bespoke,
customised and boutique funding solution. Our preferred volume loan target
ranges from $0.50 M to $2.00 M, depending on the location, gearing, urgency,
availability of funds with particular lenders, and a raft of other factors.
Similarly, pricing is dependent on such factors, and it is therefore impossible
for us to provide a precise lending matrix is for easy reference. Each deal is
a clean canvass and should be discussed directly.
Where there is more than one
security available (eg, as in the case of strata units), then we may have the
capacity to provide funding of considerably greater volume.
Little Rock has a very relevant
place in the range of first mortgage funding. Broadly speaking, this spectrum
is covered by major bank, second tier banks, and other institutional funding,
medium term private lending (such as ours), and "hard"/emergency finance.
We do not deal in the latter, though clearly there is a pace for such lenders
where there is a genuine benefit to the borrower. In fact, it may be that such
hard financiers will seek our assistance in refinancing their short term
position to avoid equity erosion. On the other side of the coin, it may be that
the banks and institutional lenders have a transaction in which they have a
genuine belief, but which for technical reasons would presently fall short of
their strict criteria, or capacity to act in sufficient time.
Finance brokers may immediately appreciate
that a transaction is be better suited to medium term private funding in the
first instance so that their borrower may take advantage of a particular
situation, get the "house in order", and transition the deal into an
institutional one with some slight re-structuring, or just even clerical catch
up for all of the boxes to be ticked.
So, Little Rock, as I have
mentioned in earlier bulletins, is a "Transition" financier. In these
cases, we take primarily an asset based
credit view, with particular emphasis on exit strategy. We provide due
diligence to our direct private clients, underscoring not only the asset
approach, but also the responsible benefit and capacity of the applicant.
