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Featured // June 22nd, 2020

Mezzanine Financing Pros

If you're raising capital to fund your project development, you may want to consider using mezzanine loan as part of your financing solution. Mezzanine financing is a useful tool to fund developments, expansions or property acquisitions or completing a construction project. You can use it in combination with equity financing, line of credit, term loans, or as a substitute for bank loans. In a capital structure, it sits above equity financing. Here are the benefits of using mezzanine finance: It is cash-flow based. While banks look into your collateral, mezzanine...

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June 22nd, 2020
Featured

Mezzanine Financing Pros

If you're raising capital to fund your project development, you may want to consider using mezzanine loan as part of your financing solution. Mezzanine financing is a useful tool to fund developments, expansions or property acquisitions or completing a construction project. You can use it in combination with equity financing, line of credit, term loans, or as a substitute for bank loans. In a capital structure, it sits above equity financing. Here are the benefits of using mezzanine finance: It is cash-flow based. While banks look into your collateral, mezzanine...

June 22nd, 2020
News

Important Features of Commercial Loan for Property Developers

Property developers looking to refinance or purchase commercial property can apply for commercial property finance both for small and big projects. Is commercial loan similar to commercial mortgage? No. A commercial mortgage is a type of mortgage loan secured by a commercial property. Its main purpose is to purchase, redevelop or refinance a commercial property.  On the other hand, conventional commercial loan is a short term financing mainly used for the purchase of equipment, funding for payroll and other basic operational needs. But, there are specialized lenders offering commercial loans...

June 22nd, 2020
News

Tips When Calculating your Costs before Starting a Development Project

Before applying for a commercial mortgage to fund your development project In Melbourne, make sure you conduct a ‘needs-assessment’ or a thorough analysis of your financing needs first. Step 1. Calculate the costs associated with the stages of development of a project. Pre-development stage (or the planning phase): It may include the appropriate filing fees, regulatory fees, legal fees and other expenses incurred in the formation of your organization or startup. Pay particular attention to acquisition options, marketing costs and the costs of securing loans for your project. Development stage:...

June 22nd, 2020
News

Melbourne Housing Prices Keep Rising

Known as the city of cutting-edge architecture, spacious parks and gardens and a prime spot for water activities, Melbourne is also pegged as Australia’s hottest property hotspot. Melbourne’s property market is expected to perform better than most locations in Australia this year as the asking price of houses in the city reached its highest pick. The latest weekly SQM Research data reveals that the median asking price in the city exceeds 1 million for the first time. This continuous decline of more affordable houses is an opportunity for property developers...

October 7th, 2019
News

Common misconceptions of private lending

Many developers and investors shy away from private lending due to a number of misconceptions. A common perception is that private lending is slow, expensive and inflexible. Many of these misconceptions have grown in the past year or two as many inexperienced lenders entered the market without the resources to deliver on funding promises. In the past few months many of these novice lenders have exited the market clearing the way for better outcomes from experienced finance businesses. In the right hands private lending is much faster than banks, however,...

September 23rd, 2019
News

It’s time to start planning for the upturn

Every property developer knows you can’t pick the bottom or the top of the market. While some pessimists are calling this is a “dead cat bounce” others are starting to see sunshine over the horizon. We believe the market is in the early recovery mode and it is time to start planning for the next upcycle. The roadblock at the moment is the banks (still!) who won’t lend on anything without 110% sales. (That’s 100 per cent sales plus GST plus sales commission.) This is compounded by the valuation industry...

February 1st, 2019
News

Private interest rates fall in competitive market

Interest rates in the private debt funding market has dropped significantly, despite banks closing their lending to property investors said Chrish Samuel Managing Director of Windsor Capital Management. Mr. Samuel said more than a billion dollars has poured into the short-term debt market pushing interest down to recent lows as the weight of money flowed into the sector. He has witnessed rates fall from 12% pa in early 2018 to rates from 7.95% pa today for property backed debt. “This has allowed breathing room for property developers to restructure their...