Grant Rheuben interview
Left: Adam Gringlas, Right: Grant Rheuben
As finance lenders, we love number crunching and spreadsheets. But it’s actually people and partnerships that really bring projects to life. The nuanced problem solving and care that a great team provides is the difference between a vision realised and a vision that remains just that.
Grant Rheuben is a great example. Grant is a finance broker, chartered accountant with 20 years’ experience and a franchisee who works with more than 1000 brokers throughout Australia. He’s also a trusted Jadig development partner.
How do you approach finance broking?
Grant: My whole philosophy about being a finance broker and how I work with clients is that I sit on their side of the desk. My approach is that everyone’s got a different story and it’s about understanding that story. Then, coming up with a solution that best fits their needs and objectives to get them the best outcome. I see myself as a trusted advisor, and I believe that makes me a great fit to partner with Jadig.
What have you worked on recently with Jadig?
Grant: We first worked together on a land subdivision in Greenvale, which was a success. Our most exciting transaction right now is residential project, Atrium, in Cowes, Philip Island. With 45 apartments over five levels on prime land, it’s the largest apartment project to date on Phillip Island on a scale that has never before been seen there.
As a result, it’s high risk, which is why I worked with the sponsor for two years training, coaching and mentoring them to get them ready to proceed to the financing stage with Jadig.
What was strategic and savvy about the transaction?
Grant: Jadig introduced a solution to mitigate risk that would not have been possible with a traditional bank. Firstly, they introduced conditions such as being more open to pre-sales. A traditional bank might enforce 100 per cent of pre-sales, but Jadig committed with less demonstrating their confidence in the product.
They also introduced a 10 per cent contingency cost, because we were in the middle of COVID and building prices were going through the roof. This was pragmatic because it provided a buffer to make sure the sponsor could deliver the project, regardless of market condition.
Finally, Jadig believed in the opportunity and supported the sponsor’s decision to hold the property long-term and short-stay the apartments. Now, this development looks set to create a new land record.
How important is trust and family values?
Grant: Given the size of the transaction, trust is everything. You want to work with a private lender that you trust, because if you don’t know whether they have the money to make that next payment, it could turn into a disaster.
From the outset, Jadig was inherently passionate about the vision of the sponsors, and the sponsors liked that they are a family business, like themselves. It became a partnership of two families, and they valued that a father and son were making the decisions, and that they could talk to the decision makers at any time.
I also work with high profile real estate families, and I think working with Adam and Jack created a consistency with what they are trying to achieve. At the end of the day, we are helping to create a life-changing project not just for families and parties, but for the future of Phillip Island and the local community.
Tell us about your consulting role with Jadig at Simple Property Loans
Grant: I want to improve the industry where I can, and I decided to join the team because I believe there is a genuine need for this product. It’s not for everyone in that it is purely for commercial finance, but it’s less expensive and cuts out a lot of the red tape associated with online loan services. Best of all, it’s a simple to use platform that will really help brokers and their customers it’s a trusted source with a solution driven approach.
I’m excited because we plan to roll this out to the industry, so that brokers can get the product and see how easy it is to work. But it won’t be a quick fix, because there’s a lot going on in the economy right now with interest rates and property prices.
What’s important is that Jadig is a trusted business and that holds a lot of weight where you may not know or understand who you’re dealing with. The Jadig family is measured about what they want to do and when they want to do it, and that’s very important in this industry. I would recommend they never change that!
Cowes, Phillip Island
