Bulletin - Product Update 30 November 2023

Private Lending – Perhaps not the “Oldest Profession”, but certainly the oldest form of lending.

Why are Investors, Finance Brokers and borrowers drawn to First Mortgage Private Lending?

Our comments in this Bulletin generally relate to peer-to-peer loans secured by a registered first mortgage over real estate. This is a personal business. It should be distinguished from second and third tier “institutional” funding, such as mortgage funds or the like.

In the Indicative Product Matrix below, we have set out various criteria for your greater understanding. This Bulletin does not set out to be a comprehensive guide though, and there is no substitute for personal contact.

Genuine “home office” private investors may be more flexible in their investment strategies than are traditional banks or other lending market participants. There are few bureaucratic layers between investor and borrower.

Put simply,

1. In an environment of rising interest rates and high inflation, investors are looking for “real” income protection as a hedge against inflation. Interest rate returns from P2P first mortgage loans may be significantly higher than from other forms of fixed interest investment. Given the short-term nature of most loans in the private market, the interest rate reset factor is also attractive.

2. Borrowers seek greater reaction time, commercial flexibility and deal certainty to justify the price (interest rate) premium charged to borrowers by private investors. Flexibility works both ways, allowing the investor greater scope for capital preservation, obviously fundamental to their position. I look forward to hearing from you as a potential lender or borrower.

Steven Acworth

(Email) steven@sma.fund (Ph) +61 488 22 44 16

Loan & Interest Rate Update - PRIVATE & Non-conforming First Mortgage Loans as at 6 July 2023

Genuine "Home Office" PRIVATE LENDING

This is NOT institutional funding. Each scenario is a clean canvas and will be considered on its individual merits. 

Preferred range is $1.00M to $5.00M for existing residential securities, though larger transactions will be considered on merit. Development finance and commercial securities will also be considered.

LVR       Fixed Rate (1 year)

65%       8.50% pa (for strong, well-located deals only*)

* For standard quality private loans up to 70% LVR, interest rates range from 10.00%pa -12.00%pa, NO VALUATION & 7 DAY TURNAROUND is possible depending on quality, urgency, location and the nature of the deal). 

Establishment negotiable + legal fees + valuation if applicable

 

“NON-CONFORMING” (or “no doc”)

Up to $3.50M loan per security (residential) - $750,000 per security (commercial)

Up to 75% LVR 

Up to 3 year term

Current Interest Rates from 9.70%pa

Establishment fee 2.00% + legal fees + valuation

 

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

Web     www.pmcs.fund

Loan Product & Interest Rate Product Update 26 May 2023

Loan Product & Interest Rate Update

First Mortgage Loans as at 26 May 2023

"If nothing changes, nothing changes"; and nothing much has changed since our last update

 

"Home Office" PRIVATE

Preferred limit is $1.00M to $3.00M for existing residential securities, though larger transactions will be considered on merit. Commercial securities also considered.

LVR       Fixed Rate (1 year)

65%       8.00% pa (for strong deals only*)

* For standard quality private loans up to 70% LVR, interest rates range from 10%pa -12.00%pa, NO VALUATION & 7 DAY TURNAROUND is possible depending on quality, urgency, location and the nature of the deal). 

Establishment 1.50% + legal fees + valuation if applicable

 

“NON-CONFORMING” (or “no doc”)

Up to $3.50M loan per security (residential) - $750,000 per security (commercial)

Up to 75% LVR 

Up to 3 year term

Current Interest Rates from 9.70%pa

Establishment fee 2.00% + legal fees + valuation

 

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

First Mortgage Loans - Product and Interest Rate Updates as at 5 May 2023

“NON-CONFORMING” (or “no doc”) 

While PMCS primary business focus remains in the “home office” private mortgage loan space, our supplementary “non-conforming” product has a couple of substantial improvements (and one change unfortunately brought about by the RBA). Our current loan interest rates for both products are set out below. 

Non-conforming residential loan limits have increased to $3.50M loan per security (up from $2.00M) with a maximum exposure per borrower of $5.00M (unchanged from the previous limit). In both instances, where a particular transaction is very strong, we can consider facilities above those limits. 

We are now also able to consider loans of up to $750,000 secured by commercial property. 

Current Non-conforming Interest Rates for Existing Residential Investment Dwellings 

LVR       Variable                                      Fixed (1 year – up to 3 years available)

65%          9.70% pa                                       9.95% pa (standard quality proposals)

70%          10.15% pa                                     10.45% pa

75%          10.75% pa                                     11.00% pa

Establishment fee 2.00% + valuation + legal fees

 

"Home Office" PRIVATE (generally “bridging” loans)

LVR       Variable                                      Fixed (1 year)

 

65%       8.00% pa                                      8.00% pa (Class A proposals in limited locations)

Standard rates up to 70% LVR presently range from 10%pa -12.00%pa, with fees negotiable depending on urgency, location and the nature of the deal). Development funding may also be considered.

I look forward to discussing any scenario with you.

Steven Acworth

+61 488 224416

Email steven@sma.fund

PMCS Current Lending Rates

Existing Residential Investment Dwellings

"Home Office" PRIVATE & NON-CONFORMING

First Mortgage Loans as at 13 April 2023

 

LVR       Variable                           Fixed (1 year – up to 3 years available)

65%       8.00% pa                        8.00% pa

70%          9.95% pa                            10.20% pa

75%        10.49% pa                            10.74% pa

The above prices are for straightforward, category 1, existing dwelling, investment loans up to $2.00M per security property. For other prices, POA.

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

Web     www.pmcs.fund

Breaking News – RBA lifts cash rate another 0.25% But what does it mean to a private lender, and how should we analyse risk?

Breaking News – RBA lifts cash rate another 0.25% But what does it mean to a private lender, and how should we analyse risk?

 

It seems totally appropriate to me that in our statistically voracious world, the adage “There are three kinds of lies: Lies, Damned Lies, and Statistics” — has been attributed to Mark Twain, who himself attributed it to British Prime Minister Benjamin Disraeli, who might never have said it in the first place.

Lies, damn lies, and statistics. Do statistics relating to the decline in home values around Australia “speak with a forked tongue”?

Yes and no.

In simple terms, I have been unable to find statistics that drill down the way I’d like for my practical needs. Loan to valuation ratio (LVR) is the single most important determinant in private mortgage lending. And in a softening valuation market, it’s not only the direction, but also the pace of that softening which is important.

Numbers that I’ve been able to find regarding recent house price reductions are interesting in general trend terms, but they seem to only relate to the real estate adage – location, location, location – broken up as to Australia, State, City/Town, and even suburb.

What is missing, is price point analysis within those locations; and in my view, that is what a private lender needs to determine current LVR and risk profile.

There is no doubt that the general trend for house prices has been down for some time. Briefly, in that context, it is interesting to note that CoreLogic’s national Home Value Index in January declined by 1.0%, after the decline on December was 1.1%.  This January reduction was the smallest month-on-month decline since June last year.

The consensus seems to be that house price reductions will continue.

Today, Reserve Bank of Australia (RBA) called its ninth consecutive interest rate hike since May last year, upping the official cash rate to 3.35 per cent on Tuesday (7 February) - the highest level since late 2012. It is largely expected to increase further at the next RBA board meeting on Tuesday, 7 March 2023.

PropTrack director for economic research Cameron Kusher commented: “At the beginning of May 2022, official interest rates were sitting at 0.1 per cent. By the end of 2022, the cash rate had increased to 3.1 per cent.”

“Today, the Reserve Bank lifted rates another 25 basis points.

“With borrowing costs continuing to rise and the subsequent reduction in borrowing capacities, property price falls are likely to continue and accelerate in 2023, with the more expensive cities likely to see the largest price falls.

“Nationally, we are forecasting prices to fall by a further 7 per cent to 10 per cent by the end of this year. 

He added: “With the RBA’s hike of 25 basis points today, we’re expecting an additional rate rise of 25 basis points, or thereabouts, likely to follow next month.

“Thereafter, we expect rates to remain on hold, with the potential for them to be reduced in late 2023 or early 2024. 

“We anticipate these further interest rates rises will push prices lower. However, a lower interest rate peak and earlier than expected interest rate cuts could ease price falls,” Mr Kusher stated.

And all of that is very interesting. But wouldn’t it be great if we could form a view on LVR appetite based on the inter-relationship of location by price point? If someone can point me in the right direction, I’m all ears.

 

Steven Acworth

 

PMCS Current Loan Products Profile

I trust that 2023 has started well for you.

As reported late last week in "Mortgage Business" magazine… "refinancing activity in December reached its second highest level ever, while the value of new loans continued to fall."

As you know, more interest rate increases are likely! With the current round of rate hikes, increasing refinance activity and tightening credit policies, we believe that there will be greater borrower demand for genuine "home office" private lending in the coming year, and an increasing volume of funds available from private investors to service that demand. 

We have been asked to highlight our exact services briefly, but with sufficient information for you to know whether or not we may be of service to you.

We provide - First Mortgage Loans for Residential Investment (acquisition of refinance) as outlined below. Yes, we do provide Development, Commercial & other Structured Loan Facilities. You should contact us to discuss the particular scenario.

PMCS is not a Finance Broker. We do not deal directly with borrowers and all of our business comes from referral sources.

Our traditional expertise is in private lending.

We do however have an Australia-wide, “non-conforming” product which we can use to “exit” our own private position, or which may offer a better option where there is sufficient processing time to settlement and/or where a higher LVR or longer term is required.

PRIVATE & NON-CONFORMING LOANS AVAILABLE

Below is a summary product guide. For further details, please contact PMCS.

PRIVATE

LVR                                  Up to 70% (65% preferred)

Rate                                 10-12% fixed

 Type & Term                 One year (minimum 6 months), interest only

Location                         Major centres (Eastern States preferred)

External Valuation       May not be required for conservative LVR

Establishment fee      From 1.25%, and may be built into the loan interest rate under some circumstances

NON-CONFORMING

LVR                                  Up to 75% 

Rate                                 8.99% (variable - RBA)   

                                          9.49% (fixed one year - up to 3 years available)

Type & Term                  Up to 3 years, interest only

Location                         Capital cities and major regional centres, Australia-wide

External Valuation      Required in all instances

Establishment fee      2.00%

 

I look forward to hearing from you to discuss any scenario.

Steven Acworth

Mobile   +61 488 22 44 16   

Email  steven@sma.fund  

Web   www.pmcs.fund

Fleas Navidad! Happy and Peaceful Christmas from me, the Six White Boomers ... and The Dog!

Go Jackaroo, Go Curly, Go Bluey, we're early, Go Two-Up, Go Desert-Head, Go Snowy, he's surly!

Go Jackaroo, Go Curly, Go Bluey, we're early, Go Two-Up, Go Desert-Head, Go Snowy, he's surly!

Private  Christmas mortgages (and year-round!) for borrowers and investors 

Steven Acworth  www.lrpm-aus.com  steven@lrpm-aus.com

It's been a while since I last contacted you (a year in fact) and I'll keep it brief now. You know lrpm and you should know what's required in our specialist market

  • Private mortgage loans and structured mortgage finance currently available for borrower - introduction and processing by third parties (Finance Brokers/Accountants) preferred for their experience and efficiency. Quality in = quality out!

  • $500,000 - $5,000,000 (optimum range $1,000,000 - $2,250,000)

  • Non-code only

  • Completed stock obviously preferred, BUT will consider -

  • Land bank, working capital, development

  • Earliest settlement - 7 days, but that’s largely in your hands. Prefer 30 days

  • POA (dependant on gearing, risk, location, nature of security etc – each proposal is a blank canvass). I am not the least expensive. I am not the most expensive. I am the most knowledgeable and experienced!

  • Private mortgage investors – enquiries welcome - $500,000 upwards

Yes, we are open, though over the holidays a brief but informative email enquiry is probably best. 

That’s it. Thank you.

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Banking/Institutional Funds Tightening, and Borrower/Investor Web “Matching Platforms” - for “Private Lending”?

It’s been a while since we reached out to you. It feels like I had just wished you a Happy Christmas 2017 when I began this Bulletin, and now it’s almost time to wish you a Happy Christmas 2018.
In fact I did, and it is!
Today, I’ll very briefly cover two topics and suggest that you call with any queries. A phone call is realistically the only way to find out if your scenario suits our current requirements and capacity. 

  1. Banking and Institutional Funds Tightening

We are all aware that the nature of the banking and institutional lending market has changed dramatically in 2018.

This as been a very busy time in genuine private mortgage lending – where one person/family/private company is the sole investor. Many, “non-code” (refer NCCC) loans which would previously have been available via banks or other institutions no longer fit their criteria for a variety of reasons. 

As a result, due to the increased quality, those investors already involved in the private market as direct lenders may be prepared to consider larger individual exposures (though at LRPM we still prefer the $0.50M to $4.00M range, and preferably for completed product). In addition, it also appears that there are now more private investors prepared to consider lending into the market as part of their investment portfolio.

Given the short term nature of real private mortgage loans and structured finance arrangements, more “high end” borrowers are prepared to accept that the premium pricing (within reason) of the private market as a “cost of doing business” for profitable outcome – rather than potentially no outcome. In the end, Return on Investment and Internal Rate of Return are the key factors for both investors and borrowers. Still from a borrowing viewpoint, the fact is that frequent inter-action/consultation during the course of a loan is often required. Things change and early reaction is important. With institutions, this often involves using a sledge-hammer to crack an egg. Without strict guidelines, a mutually satisfactory, individual and commercial approach is more likely to be available through private negotiation, without the hindrance of credit committees or other external restrictions.

As far as LRPM is concerned, each potential transaction starts as a clean sheet - bridging, “opportunity” funding, smaller developments, left over stock, or whatever the purpose of the private loan, the borrower’s benefit, ROI/IRR and strong exit strategy are our key drivers.

Obviously, as demand for genuine private funding is strong, so must the loan proposals be, and the key to standing out in the pack is presentation by our Introducers.

2. Borrower/Investor Web “Matching Platforms” - for Private Lending?

For some years, there have been web sites devoted to matching borrowers and “private lenders”. No doubt these have a place. In our view, more for transactions seeking placement in “mortgage funds” or the like, where standard terms and pricing apply.
However, genuine private lending is a different animal. Investor appetite to even consider the proposal is primary, and from there, other factors are relevant. There is a direct relationship between borrower and investor. Each proposal begins as a clean canvass via a phone call or email – there is no loan matrix; no standard terms, conditions nor pricing.  Direct communication is essential from the outset from the Finance Broker, Borrower, or other Introducer. It is impossible to set out all relevant factors on “Matching Platforms”.
Previous experience with LRPM, or referral from those with that previous experience is the only way to begin the conversation.

Please visit our web site www.lrpm-aus.com to find out more. We’re a phone call away.

Steven Acworth

FUSS FREE HOUSE & LAND CONSTRUCTION?

IMPOSSIBLE?

HELL, NO!

Non-code only!

We recently completed the construction of a house and land package. “So what?”, I hear you ask.

Well, we advanced ALL of the money directly to the borrower’s bank account. There was no valuation required. There were no progress draws.

It was a small loan. The kind we prefer. The applicant had spent $300,000 of his own money, anticipating.

  • The house is well located
  • There was no fixed price (or any other kind of) contract to complete. We accepted his pricing as reasonable after minimal research with a builder friend
  • He needed another $600,000 to complete
  • As a tradie, he had the capacity to complete
  • He clearly intended to complete.

He was far enough down the track for us to be satisfied that he was far better off finishing the job and selling the property than taking a holiday with our money. Sale of the land alone would have almost covered our principal sum. There was minimal risk.

Corporate borrower.

Approval – 24 hours. Settlement – 7 days.

Term – 6 months. He was finishing the job in spare time from his alternate employment and provided regular photographic update.

He was let down by his bank, who were going to take too long anyway.

That’s outside the square, and we’re looking for more.

Sale contract is expected to exchange next week.

Contact us. We like these deals.

THE NON-NEWS BULLETIN, NEWS BULLETIN, ABOUT GENUINE PRIVATE MORTGAGE FUNDING.

Lrpm-Aus Pty Ltd A.B.N. 31 615 451 691

News? Not really. No academic analysis. No economic insights nor forecasts. No hyperbole.

We have private funds available essentially for first mortgage loans for completed product (commercial or residential non-code, by far preferred) or DA approved land. Will consider blend of first and second mortgages to get the gearing a little higher. Preferably $500,000 to $3,000,000 per security.

Strong transactions in a hurry.

Genuine private investors only.

No valuations unless it’s complex (and we don’t like complex).

POA.

We only deal via Brokers. You should already know the rules. I shouldn’t need to repeat them to you. No unlikely locations. If there’s more than 30 seconds of explanation then it’s probably not for us. If we can’t receive an application in the afternoon, complete sufficient due diligence to have it approved before lunch tomorrow, and issue instructions that afternoon, it’s probably not for us.

We’re a little bit “over” development applications, but will consider them where there is a genuine back story.

Contact Steven Acworth.

That’s it. The end.

MERRY CHRISTMAS AND HAPPY NEW YEAR!

Let's face it, Christmas in Australia is hot; and it might be wet. Unless you're in Tasmania, it probably won't be snowing - and even in Tassy it's fairly unlikely. There's not much point in "Dreaming of a White Christmas", unless you are imagining the frothy, white water from waves crashing on bleached, sandy beaches. So let's focus on our own "Six White Boomers", eat a prawn or two, enjoy a Pale Ale or three, and please have a Great Australian Christmas and a Happy, Prosperous and Peaceful New Year!

Yes, we are still open for business, but expectations must be realistic.

Basically, any thought of a pre-Christmas settlement in our world of the private mortgage market is bordering on impossible. We will remain able to consider transactions throughout the holiday period, but with the rest of the commercial world shut down, practically speaking, mid to late January is now the realistic timeframe target, and then it will depend on quality, quantity, nature, location etc.

Progressive Re-Branding - Private Mortgages, Phased Development Finance and Financial Engineering

I recently sent the first installment of several to further explain the private mortgage lending and financial engineering industry in Australia. Further installments will follow over time.

In compiling that first Bulletin, we took further steps in a journey commenced several months ago – to rebrand and better emphasise that we are “The Private Mortgage Professionals”. With our innovative private mortgage lending and structured financial engineering, we really do mean, “If you change the way you look at things, you change the things you look at change”. 
 

OUR APPROACH IS GENUINELY DIFFERENT

 is now our primary website. It has been simplified, contains fewer words yet better explains the market, who may benefit from it, and our role. Like our previous website, www.littlerockprivatemortgage.org, it was prepared by me - and I don't claim to be an IT professional. In any event, all traffic from the old site will soon be linked to www.lrpm-aust.com. Please update your records.

That said, this is just a further stage of the re-branding. There will be a much more professional website going "live" in the relatively near future. Yep, I finally allowed the moths out of my wallet and have someone who actually knows what they are doing re-design and edit the site. Keep your eyes peeled.

In the meantime, it’s business as usual and we look forward to hearing from finance brokers, borrowers and private mortgage investors who we may benefit from our services. A phone call only takes a few moments.

What Is Genuine Private Mortgage Lending? Advantages and Disadvantages

 What is genuine private mortgage lending and who are private lenders? Who benefits? What are the differences between private and institutional mortgage loans?

To unsubscribe, please click the following link. It will take you to our main web site "News" page, where you may click to automatically UNSUBSCRIBE from future bulletins.

1. What is genuine private mortgage lending and who are private lenders?

Put simply, according to one investment group, “the definition of a private lender is an individual that you can negotiate directly with on a personal basis to borrow money for real estate investments”. 

  • Genuine Private Investor Mortgage Finance entails a personal relationship.
  • Private lending is the oldest form of lending. LRPM’s primary role has been to transition a non-code first mortgage lending proposal which has merit but which does not fit bank/institutional guidelines to a point where it does. Generally, this has taken place over a term of 6 to 12 month.  Our facilities are heavily asset and “exit” focused.

 2. First & Second Mortgages

Private first & second mortgage funding is now available! $300,000 to $6,000,000 for a single property, but significantly larger sums may be available for completed strata units or other structured finance, including development loans.

 3. Opportunity Finance

There may be a significant benefit available to a borrower, but only if a property purchase (for instance) is settled very quickly. Where the property is sufficiently attractive as security, information provided to us by the applicant is accurate, and the transaction has a positive risk/reward/cost benefit (and this is important to lenders as well for due diligence reasons), we are able to process and settle the loan without the delay and in a timeframe unable to be matched by institutions with layers of reporting levels.

 4. Transition Finance

Even though a borrower may be in a sound financial position and offering strong security, the proposal may not currently fit institutional funding criteria. For instance, it may take time that the borrower does not have available before settlement to bring its financial statements (or BAS) up to date.

In these instances, we refer to the process as “transition” finance. We provide breathing space for the borrower to attend to matters to suit institutional lending requirements, and because of the extra costs of private finance, incentive to do so.

5. Development & Structured Finance

Until recently, we had not been involved in development, structured, equity (both ordinary and preferred) or mezzanine proposals.

  • "Pre-sales" may be arranged.
  • For developments, is it feasible for LRPM to use private as well as bank/institutional debt, preferred private equity and other structures in combination and peacefully co-exist? Categorically, “YES”! LRPM refers to it as “Phased Development Finance”.

6. Residual Stock (up to $20.00 M)

If you have leftover units from a development and need to discharge the existing facility, LRPM may finance unsold stock to provide time for orderly sale or long term refinance.

7. Clean Canvas

In the private space, each proposal is a clean canvas, and early discussion is important.

  • There is no strict formula or set of guidelines and each of our private investors has differing appetites in terms of investment amounts, locations, type of security and investment return expectations etc.
  • Therefore, it is not possible to provide an un-equivocal “loan matrix”, until we have at least discussed the proposal with you and considered its merit.
  • For example, we may take into account the “uptick” in property valuation achieved where the applicant has obtained DA during a long term contract, option or similar. In that manner, we may fund full purchase price where there is real “skin in the game” (though significantly less than required institutionally).

8. Pricing

For the reasons above, pricing is on a deal by deal basis. Call me for a quote.

…………………………………

This is the first installment of several to clarify LRPM role, and genuine private investor finance in the industry. LRPM is a packager and manager working in conjunction with a limited number of high net worth private investors. It is not a finance broker and works with these investors. There is no conflict with finance brokers.  It completes an Information Memorandum after packaging and due diligence, supervises to settlement, and assists with loan management after settlement. We do not claim to work with numerous investors, but have strong commercial and personal relationships with a few.
 
To a degree, the “private mortgage lending” waters have been muddied over time by smaller institutional lenders (with some of the characteristics of genuine private lending), and this will be discussed in a subsequent installment.

In the meantime, if you have a scenario to discuss or seek clarification, please contact the writer, Steven Acworth via LinkedIn, or on 0488 22 44 16 or follow the details on our web site …. (to be continued …)

My Current First Mortgage Wishlist: No Magic Lamp, and Just One Wish

LET'S HELP EACH OTHER MAKE IT COME TRUE...

Are core private mortgage loans still “core”? Currently, I don't think so. I'd love to put some basics back in the mix.

I’ll be brief. I think we’ll all agree that this calendar year has so far been a very busy one in our private mortgage market. For LRPM, it’s been our biggest since inception. There are many reasons which I don’t propose to go into – brokers and borrowers alike already know.

While settlement volume has been strong, what I find interesting though is the nature of those settlements. They have been incredibly varied, often challenging, but yet don’t generally fit into what I consider our core business.

Only one settlement this calendar year has been an urgent first mortgage loan, no valuation necessary, non-code loan, secured by existing residential property, borrowed by a company under a third party mortgage, and for $1.00 M.

The majority have been far more complex, larger and in some way development related. And we’ll still welcome those proposals. But they can be draining, can’t they?

And it has left a time and servicing gap. We have numerous private mortgage investors whose preference remains in the $0.50 M to $1.00 M. They have cash on hand and I’m contacted frequently asking for loans of this nature.

Frankly, I don’t have them at present; but I would like to shake some out of the trees. So, without beating about the bush (pardon the pun), if you have any (including offshore investors not presently being funded under the banking system), please call me about them.

In relation to the latter, but because of the need for nimble settlement and our primarily asset based approach, a number of developers are considering interest rate subsidy on behalf of purchasers to settle sales until the current bank reluctance to fund has washed through.

We’re here. We have the funds available for smaller, straightforward transactions for timely settlement. Yes, we still do the larger, more complex ones, but frankly, it would make more sense to mix it up a little with some smaller loans secured by existing residential and/or commercial properties – they’re easier to do quickly, and that, at the end of the day, is my primary driver in this private (essentially first mortgage) market.

Download and Complete the New Loan Application Form!

Being the IT expert that I am not, but the owner of considerable determination, I am proud to announce that after several months of concerted effort, I have finally been able to include an easily downloadable and editable Application Form for use by borrowers and Finance Brokers alike. In the end it was easy (I think, depending on the feedbcak I receive), but arriving at that place of ease was entirely difficult.

To the best of my knowledge, I have standardised the font size and made the document user friendly. However, where I have not succeeded, or where you have constructive criticism (my fragile ego wouldn't survive the destructive kind).

If you are going to use this Downloadable and Editable LRPM Application Form, it is VITAL that you read the notes on the accompanying web page - or it is if you want the most expeditious response, and one more likely to be positive if the material is presented in a logical and orderly manner.

Please visit Application Form and let me know what you think. But please also be gentle.

Re-Branding

In keeping with our gradual re-branding to LRPM, Little Rock Investments Pty Ltd (aka Little Rock Private Mortgage) has launched a new website – www.lrpm-aust.com

We would very much appreciate it if you would click on it to show the Search Engines that you care. We would also be very happy to consider a link to your website, and vice versa, to expand existing and future relationships. Please consider and let us know if you are interested. There are ways of ensuring introduction credit lies where credit is due, so that, for instance, no finance broker is circumnavigated by direct contact from your customer.

Presently, this new site is for reference purposes only. It will generally only contain links back to our existing primary website www.littlerockprivatemortgage.org as well as our media and blog platforms. It will also be kept up to date with News items that we post. Including this one.

The new website will become our primary conversation with, and point of contact for, the private mortgage commercial world over time.

Though we would prefer that you use www.lrpm-aust.com  as your launching point for referrals, new customers, access to our Application Forms etc, you may use either address for the time being.

We thank you for your previous support and assure you that we remain committed to professional private mortgage lending outcomes, and to fostering direct long term relationships with investors, borrowers and finance brokers.

       

 or email

steven@lrpm-aust.com 

steven@littlerockfinance.com.au  

steven@littlerockprivatemortgage.org 

littlerockinvestments@gmail.com 

New Product, Process and Approach...

We're continually trying to improve our professional service in the Australian Private Mortgage Market for Investors, Borrowers and Finance Brokers. 

Since our last communication, we have analysed the Private First Mortgage industry, and noticed a glaring omission for "beginning to end" finance packaging for developers, which also provides significant incentive and comfort to first mortgage investors; coupled with continuing consultation, management and goal oriented strategy all the way.

As a result, we introduce "PHASED DEVELOPMENT FINANCE - a beginning to end process, from land financing, presales, structured/equity participation as required, and institutional exit.  

WE ALSO EXPECT TO BE ABLE TO ANNOUNCE IN THE NEAR FUTURE A MAJOR NEW PARTNERSHIP.  A PARTNERSHIP THAT WILL NOT ONLY FIT SNUGLY INTO OUR "PHASED DEVELOPMENT FINANCE", BUT IN GENERAL FOR STANDARD PRIVATE FIRST MORTGAGE LOANS, NOT ONLY PROVIDE RISK MITIGATION FOR INVESTORS BUT ASSIST BORROWERS WITH CREDIT ENHANCEMENT.

WATCH THIS SPACE!

PHASED DEVELOPMENT FINANCE

Is it new? No!

Does anyone really do it in a co-ordinated and integrated way, with consultative approach, direct involvement and with a view to positive outcomes for all parties – you are the lifeblood of our operation? In our view, no!

In addition to standard private mortgage lending, our phased development finance strategy and process is in three parts.

  1. Settle the refinance or purchase of land via private first mortgage loan based on assessed valuation - say 50-60% LVR depending on location and usual criteria. Remember, we DO NOT always require an external valuation for this purpose.  
  2. Applicant obtains presales sufficient for institutional take out. We may also assist in this capacity if required. 
  3. LRPM simultaneously completes due diligence and Information Memoranda for two purposes 
  • if required, structured Preferred Equity/JV/Mezzanine participation from an external investor introduced by us (or for presentation by you), and
  • Institutional development finance to discharge the existing LRPM first mortgage, and provide completion funding at a pricing based on funds utilised considerably lower than that available in the private market, which is generally based on a fully drawn advance, and at a much higher interest rate, for accounting and calculation of interest purposes.

In other words, taking this orderly approach may save applicants considerable

  • time and stress, by providing a professional approach to structured finance and institutional development funding, 
  • COST, taking the proposal from the more expensive private market to an institutional standard, AND
  • provide comfort to private first mortgage investors, increasing likelihood of positive response

To find out more, call us, or contact us via

steven@lrpm-aust.com 

steven@littlerockfinance.com.au  

steven@littlerockprivatemortgage.org 

littlerockinvestments@gmail.com