Hey Guys,
I am a co-founder of a co-working space in Sydney and after investing all my available funds to start and expand the business over the last 4 years we are now looking for help with securing outside funding through ANZ to facilitate new expansion.
For those that are not familiar co-working is the fastest growing sub-sector of commercial office space in Australia (& Europe & USA), where office space is offered for an all inclusive price and is available to companies between 1 to 100 people in size. A good article that explains the benefits here.
The help I need is that banks are hesitant to lend $300,000 we need to expand as an unsecured loan, but they have verbally indicated that with our great financial history and a property to secure against the loan they would approve our application within a week.
Therefore I am looking for a smart investor that would be happy to earn a return for securing their property with my business loan application. The rate can be negotiable but I have been thinking 5% – 8% pa on the equity secured against would be a fair return.
For serious inquiries I have all the relevant business documents and forecasts needed to do an in-depth due diligence prior to making a commitment, and when we come to an agreement I will ensure that we have a formal legal document that protects both our interests.
If you could please email me a brief history of yourself and your assets along with contact details so we can discuss it further, if you have any questions please post them below.
Carl
[email protected]PS: If this opportunity is not something you can help with but you know someone who would, I would be happy to pay $2000 as a finders fee for a successful referral.
5-8% for an unsecured business loan for a business which can’t get lending through traditional lenders is quite fanciful.
-
This reply was modified 9 years, 6 months ago by
Corey Batt.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
As Corey mentioned, securing a loan at the rate you are hoping for is unrealistic. Even with a secured loan where property is offered as security (which you are not offering), the absolute best you could hope for is more like 1% per month.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
That seems a bit steep. Unsecured loans are around 15% and secured loans are around 7-8% with ANZ.
If what your saying is the accepted norm then that would make repayments (8% bank + 12% investor returns) around 20% p.a. or around a $3000/month kickback to the investor, is that correct?
-
This reply was modified 9 years, 6 months ago by carlrsullivan.
Incorrect. I made no mention of bank involvement. Investors will sometimes do the loan by themselves. As I said, on loan where the investor is lending against a security asset (ie property) you would expect to pay a bare minimum of 1% per month, payable to the investor. This has nothing to do with a bank.
You may think it sounds steep but it is important to compare apples with apples. There is no point comparing against bank rates if banks have declined to be involved.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Good luck getting an unsecured loan of 300K at 15% per annum.
As Jacqui has mentioned we are getting upto 3% fully secured by residential property at say a 65% lvr so your rate is cloud cuckoo land.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Another issue is whether a bank would be willing to lend you by securing an unrelated party’s property.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The summary of the deal is : hand over $300k or a property with $300k equity in it to you, for just 5-8% return on the $300k. I can’t understand why you think that is a fair rate of return that will attract a “smart investor”.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Ok point taken, so what do you feel would be a fair return?
Personally no level return would make me interested if it is unsecured but i guess everyone is different.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As a silent investor nobody with any brains would touch it with a barge pole. You would probably have better luck convincing someone of the merits of your business plan, and convince them to come in as a business partner that will share profits.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
As a silent investor nobody with any brains would touch it with a barge pole. You would probably have better luck convincing someone of the merits of your business plan, and convince them to come in as a business partner that will share profits.
I would agree with this. I just lent a business 65K but it was secured against the business, the stock (including some very sellable big ticket items worth more than the capital) and a personal guarantee – 8% and I did it to help out as it is a lousy return. I see that as almost a gift with break even to make it just barely worth doing as a favour and not getting robbed for it. I would get a much better return in leveraged real estate but I want to build a relationship with the owner as I like the way he thinks. My point is I agree the interest rate proposed by the OP is too low without security.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
-
This reply was modified 9 years, 6 months ago by
You must be logged in to reply to this topic. If you don't have an account, you can register here.
