Time sensitive in Toorak.
Acquisition Finance, $2.0m
Case Study by Tommy F
There are times in life when all you need is a simple solution – no matter how hard it seems when you’re in the thick of it. Take the case of our recent client, a couple introduced to us via an experienced finance broker we knew well.
The couple had an unexpected and incredible opportunity to purchase a large, dated, luxury residential home in Toorak at an extremely favourable price. The opportunity was a once-in-a-lifetime chance to buy a prestige trophy property well below market. They did not want to miss out.
The settlement came with a few strings
First, the timing was extremely tight. The owner of the asset was overseas and needed to finalise settlement before Christmas.
This meant that from the time we were introduced to the couple to the owner’s deadline, we only had a few days to settle the loan and help them acquire the property. Complicating things further was that most people were already winding down for the year, out for Christmas lunches and closing their offices – including us.
Second, the couple could not proceed with bank finance and had to turn to a non-bank solution, due to the urgency. But they were new to non-bank lending. They were unfamiliar with how a private loan worked and were hesitant about what was involved. It was the perfect opportunity to put ourselves in their shoes and present our Simple Property Loan product.
Why it worked
When you need a simple solution fast, you want to know you’re in good hands. So, we invited the clients into the office several times to meet us face-to-face and walk them through the process. This peace of mind was reassuring in the context of unwanted advances from other finance groups to them at the same time, which added to their stress.
In the end, we helped them settle the property on the same day we shut down for the year. We worked extremely hard behind the scenes despite being busy with the pre-Christmas rush. We were committed to prioritising their needs and looking after their interests.
As planned, our clients are now refinancing the loan just four months later, with our support due to the transparent structure of our Simple Property Loan product. It’s a simple success story if there ever was one.
A simple solution, a logical lend
Working around the Christmas public holidays, we offered the couple a solution that was fair, unparalleled and also the most competitive. We quickly familiarised ourselves with the asset and became comfortable with their ability to service the facility, approving the loan the same day.
The couple planned to hold the asset for a few years while making some minor improvements to it and then sell it for a profit. Also, they had always intended to refinance with an investment loan from a mainstream lender in the new year. Therefore, our Simple product was perfect, structured without a minimum term and no early repayment penalties, so they could achieve their objective.
It is a perfect example of our Simple product – less hassle, without the need for cumbersome paperwork.