3 case studies of complex private loans we have funded

September 6, 2023
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3 case studies of complex private loans we have funded

Case study: Making the complex simple

Scenario: Western Sydney DA for apartments

When the project hasn’t yet been DA-approved, and there are some thorny issues to overcome, SWMM is likely to be in a unique position to help.

We had a client come to us with a request for funding for some combined lots for unit development in Western Sydney. They didn’t yet have their development application (DA) approved, and there were a few other issues. The client had time constraints and a business partner that had required a second mortgage over the property to protect their equity.

It was also a sizable loan that they were seeking. Due to the size of the loan and the various complexities and legalities, we were really in a unique position to help.

Because the property was not yet DA-approved, we lent against the land value for highest and best use. This is known as land banking, and it’s not something the banks would go for.

Not only that, we approved the loan on the spot, subject to valuation. Funding for this type of property takes a little longer, but we were able to provide the loan of $13 million within just two weeks.

“When the situation is complicated, with tricky intricacies and legalities involved – we’re far more likely to be able to help than the banks are,” explained Damien Patterson, SWMM Associate Director.
“It’s literally what we’re here for. Where banks and other lenders see problems – we see solutions.”

Case study: Taking care of client and government interests

Scenario: Liverpool commercial tower

When the government has an interest in a property, most banks and other lenders can’t help. We’re able to work closely with government lawyers to find a solution that works for everyone involved.

Keen to secure space in a large commercial tower in Liverpool, this doctor’s practice knew they needed specialist funding and support.

The building comes with a requirement that the Commonwealth needs to approve the premises for a medical practice. And because the government has an interest in the property, most banks and other lenders were unable to get involved.

The client’s decision to speak to us proved a prudent one. We were confident we would be able to secure the funding, and they received same-day approval. This was subject to valuation, which took three weeks.

We fully understood the legalities of the situation and were able to work closely with government lawyers to provide the funding solution they needed. As the only broker able to secure the deal, we were able to provide security for our loan and take care of the government’s interests at the same time.

With funding received, the GP practice was able to secure the premises and the loan is now about to be paid back.

“It was a slightly unusual situation that meant specialist support and expertise was required,” commented Damien Patterson, SWMM Associate Director.
“We’re equipped to easily handle these types of loan applications and were delighted to secure a successful outcome all round.”

Case study: From three months to one day…

Scenario: Southern Highlands development

When the banks don’t understand the complexities – we will. This was the case for a new developer in the Southern Highlands who had been searching for a loan for three months for property that was held in an estate.

The clients had been willed a large block of family land. Great – but there was a snag. The will stipulated that the land was to be subdivided and then split equally between the two clients. And the property was going to be held in the estate until the land was subdivided.

Finance was needed to pay for the subdivision, but this was where the clients hit a barrier. Most banks and lenders won’t even look at a property that’s still in an estate as there are legal complexities. They spent three months trying to secure a loan from banks and other lenders, only to come away empty-handed.

Our legal experts fully understood the legalities and complexities of the situation. Within a single day, we were delighted to be able to approve the loan, subject to valuation.

Everything went smoothly with the valuation and the loan enabled the clients to pay for the subdivision of the land. Subdivision is now complete, which meant the estate was able to distribute the land to the beneficiaries, and lots are now being sold off.

“If the loan you’re looking for isn’t fully straightforward, it’s always worth coming to us first,” commented Damien Patterson, SWMM Associate Director.
“Banks shy away from anything slightly out of the norm – whereas there are very few situations we haven’t dealt with before. Speaking to us first can save you a whole lot of stress and time.”

Delivering timely capital to borrowers, and reliable returns to investors.

Sydney Wyde is a well-credentialed private mortgage lender with a proven track record spanning almost 20 years.