Case Studies

Bridging Financing Scenarios I've Been Involved In

I have been involved with a lot of interesting lending proposals over the past 22 years, in the alternative /non bank mortgage  market. Some of the actual financing scenarios I have assisted with are mentioned briefly below. For confidentiality reasons, I can’t disclose the names of people and businesses involved but if these scenarios resonate with you, I’m more than happy to tell you a bit more about them when we have our initial meeting or chat.

How I differ compared to a more traditional mortgage broker is the type of lending or bridging finance my clients need when the main banks are not willing to assist.  I genuinely enjoy the challenge associated with bridging finance proposals, so please don’t hesitate to discuss your individual situation with me in complete confidence for a free, no obligation chat.

a mortgage broker meeting to discuss client's financing needs

Funding a Start-up

I was asked to find funding for a “start-up” venture involving a pharmacy and medical centre in Auckland. Banks would not assist due to the lack of trading history despite the client having $1.2M in equity. With my mortgage broker hat on, I arranged a mortgage of $1.2M at a very attractive rate for the client for 12 months at which point he was able to show profitable trading and go back to a mainstream bank.

Mortgagee Sale Threat Relief

I had a client receiving threats of a mortgagee sale by his bank despite the fact he had offers on two of his properties with a long settlement period. We re-financed the bank debt, capitalised interest so the family had no mortgage payments for 6 months. The result was a good one. In the end, everyone was very happy with the pressure relieved.

Mortgage Refinancing

I arranged a 12-month loan on a light commercial property in Auckland to allow the owner to re-finance his existing mortgage, tidy up the property cosmetically, lease the vacant portion and market it for sale. This loan was at 9.5% p.a. payable monthly. The leases in place more than covered the mortgage payments as I was able to negotiate an interest-only term which is not often available through mainstream lenders on commercial property. This took all the pressure off the client enabling him to maximise the sale price with the property in pristine condition and fully leased.

Short-Term Business Funding

I arranged a second mortgage of $235K for a client to assist with short term business funding. This was more expensive than the above Mortgage Refinancing scenario, however it was short term and the cost was far outweighed by the clients gain in securing his substantial business contract at the other end.

Bridging Mortgage for Home Construction

I arranged a $300K bridging mortgage through a private lender at 9% p.a. to assist a client to build his own home. There was a completed value of close to $700K but the banks wouldn’t assist due to my client’s inability to prove sufficient income from his business. A year later, when he could show income from his business, I refinanced the client back to a main bank at a very competitive rate.

Bridging Finance for Home Improvements

I helped a client source bridging finance to assist with the recladding of his leaky home. The bank he had his mortgage with would not assist. I was able to secure a private lender who agreed to lend the money for twelve months. This was a quality property in need of recladding and an important factor in making this happen was managing to get the lender comfortable with the recladding contractors’ ability over a short period of time. Fortunately for the owner, the property is now well underway to being of significant value again. We will refinance the bridging loan back to a main bank once a new code of compliance is issued. 

Development Financing on Bare Land

I arranged a $3M development loan for a 50-section site on the outskirts of Auckland. Some presales existed and the borrower was experienced in property development. The banks were not interested due to the high level of initial funding against the conservative valuation of the bare land. The private lender could see it was a sound proposal with the presales reducing his exposure relatively quickly. Not your usual mortgage broker scenario, but the kind of projects in Auckland that I have built a strong portfolio in.

Rescue Package

I organised an urgent bridging mortgage for a couple while their bank was about a week away from auctioning their home as a mortgagee sale. They stayed with the finance company we arranged the mortgage with and met all their payments for six months which allowed me to refinance them with a bank at a competitive rate. This is what some people refer to as a “rescue package”.

Short-Term Bridging Mortgage for Beach House

I arranged a short term (6-months) bridging loan for a couple to pay off the mortgage on their beach house while they marketed it for sale. Their business had slowed and they couldn’t maintain payments to the bank. We added the payments onto the loan balance so they had six months without the pressure of payments and avoiding the stigma of a mortgagee sale while they sold “on their” terms. Fortunately, they achieved a good price with an auction programme over Summer which far outweighed the higher interest costs through the finance company.

Townhouse Construction Financing

With a new private lender on board, I was able to successfully fund a 9-townhouse development in Auckland to cover the entire build cost of approx. $5M. The lender was realistic with pricing and we substantially undercut all other finance company offers to provide funding. I am also now doing quite a few large second mortgages where good equity is demonstrated.

Do These Mortgage Broker Scenarios Sound Like You? 

I have many more examples which showcase the unique type of financing I can help you with that I can chat with you about if and when we meet. As you can see, they are not your usual ‘mom and pop’ type-mortgages. Clients who Google the term “mortgage broker Auckland” and are looking for bridging, refinancing, or large scale property, development or construction project funding should definitely call me for a professional, confidential no obligations chat.

Are you in need of non-bank financing for your property project?