Capital Lending For Opportunities
Capital lending allows company borrowers and real estate specialists to seize more opportunities.
How we assess loans
Privy Capital is in a good position to find high-quality loans because it has an in-house property team and a lot of experience buying, owning, developing, and managing a wide range of property transactions. Privy Capital has a lot of contacts in the industry and manages over $100 million in assets in Australia. We look at deals from the point of view of real estate investors instead of typical lenders. We only finance projects that the company’s founders would be happy to own and manage themselves.
01
Due Diligence
- Exit strategies for projects
- Budgeting for the Future of Money Flows
- Business strategy (sales, leasing, building, and development)
- Market conditions (leasing, purchasing, and selling)
- Technical construction conditions
02
Credit Review
- Estimate project milestones and completion.
- Do a sensitivity analysis on the pre-sales level and value.
- Income determines debt repayment.
- Identify project default risk elements.
- Planning preventative measures for each potential danger
03
Borrower Review
- The Fund evaluates the borrower's history, credit, gearing, and financial position. Test the borrower's ability to carry out the project plan and pay back the loan.
04
Security Review
- Assess and test the security value and LVR. Test gearing level and recoverable value. Evaluate first mortgage holder's rights and loan impact if defaulted.
05
Actions to Reduce Risks
- Limitations on taking out more debt Borrower must achieve set objectives. Conservative LVR
06
Structure of Loan Agreement
- Analyze the Title, Planning, Regulation, etc. Legal review of leases, incentive agreements, OC rules & sales contracts. Electrical, fire, structure, or other technical reports.
Types of loans
• $200,000 to $5 million
• Up to 80% LVR
• First mortgage, second mortgage
or caveat acceptable as security
• Terms up to 12 months
• Interest rates from 10% p.a
• $200,000 to $5m
• Commercial, Industrial Property
• Up to 75% LVR
• Terms up to 12 months
• Interest rates from 11% p.a
• $200,000 to $5 million
• Up to 70% LVR
• First mortgage, second mortgage
or caveat acceptable as security
• Terms up to 12 months
• Interest Rates from 11% p.a
Case Studies
Our reputation for delivering results in property-backed transactions across Australia has been established through our funding of small to medium-sized businesses and property professionals. Our success is based on a strong balance sheet, a strong framework, and a team of experts.
Location: Kempsey, NSW
Loan Amount: $820,000
Term: 3 months
LVR: 70%
Security: 1st Mortgage
Overview: Clients purchased a residential house and need funds urgently as financial report and tax return has not been finalized. Using equity in other 2 properties, client is about to borrow 100% plus stamp duty of the property.
Exit: Refinance to a bank
Location: Lawnton, QLD
Loan Amount: $805,000
Term: 12 months
LVR: 70%
Security: 1st Mortgage
Overview: Clients purchased a residential house with a large piece of land. She plan to subdivide it into 4 lots. The lots will be sold to repay the loan within 12 months.
Exit: Individual lot sales
Location: Neutral Bay, NSW
Loan Amount: $6,110,000
Term: 6 months
LVR: 65%
Security: 2nd Mortgage
Overview: 3 properties in Neutral Bay and North Avoca, refinanced from Macquarie Bank.
Exit: Refinance to a bank
Location: Normanhurst, NSW
Loan Amount: $2,567,700
Term: 9 months
LVR: 70%
Security: 1st Mortgage
Overview: Client needs funds to complete the transaction of the property, the transaction price is $2.38 million, but the property has received DA, can be divided into 5 parcels of land for sale, the valuation has reached $3.68 million, and we have provided 70% of the loan to the client based on the valuation.
Exit: Individual lot sales