Case Studies

Case Study 1

Commercial Property Purchase - The right structure produces the right outcome

Our client approached several banks and brokers to obtain a loan of $1,400,000 to purchase a commercial property. They had difficulty in securing an approval as the structure of the loan would not comply with banks' lending policies. The unusual aspect of this loan was that the contributions of funds for the purchase was to come from the self-managed super fund (SMSF) of the 3 directors. Each SMSF was to contribute an equal amount.

We worked with our client, solicitor and accountant, and came up with a solution where a new unit trust was established to own the property and to be the borrower. Each SMSF invested in the unit trust where the funds were used to purchase the property. We understood what structure would work for the bank and we knew who to present the scenario to. This format complied with the bank's policies so we obtained the right outcome.

With the use of an experienced finance broker, your deal will be presented in the right format and to the right people.


Case Study 2

Contacts and persistence rewarded us with the right solution

Our client is a property developer who built a block of 51 apartments. He sold 29 apartments off the plan and was left holding 22 apartments. Our client had a loan of $6,200,000 against an asset worth $10,000,000. The banks were not happy to have 22 apartments in one block as security as they considered it to be a concentration of risk, regardless of the fact that our client was able to demonstrate serviceability. Our client was also paying too much interest and needed to secure a loan which would free up some cash.

As an experienced finance broker, I was able to approach 20 lenders with this scenario. Only one of these lenders was prepared to offer the right solution. They were willing to take on the concentration risk and proposed an outcome which would reduce our client's interest rate from 9% down to 5%. With interest cost reduction, our client was able to save up to $25,000 a month.

Persistence and knowledge gave us the right outcome.


Case Study 3

Client required $800,000 to purchase a split level office and warehouse. For the initial purchase we funded 100 per cent of purchase price and stamp duty.

With usage of the space, the client created an uplift of the value of the property by converting the warehouse into an office. With this uplift of value, he was able to borrow 100 per cent of property value plus stamp duty. No cash was needed to obtain this loan.


Case Study 4

Client owned an unencumbered property worth $1,000,000 in Port Melbourne. This property was tenanted on a 3+3+3 lease at $70,000 per annum plus outgoings.

Our client was able to borrow up to 60 per cent of the property value to fund a separate transaction. The funds were used to finance the development of another site. The bank approved the loan relying on the lease rental and no further financial data. There was no restriction on the purpose of the loan.


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