Case Studies
Purchasing a Commercial Property with a Hybrid Loan Structure
You wish to acquire a commercial property for the amount of $1,000,000 with a 2 year lease which will generate an additional $4,000 per month. You have $200,000 in liquid savings to take care of the deposit, stamp duty, any establishment fees and legal fees. You know you will be able to meet the repayments of the loan as you have a strong business with $21,000 in surplus cashflow per month. With the additional revenue from the lease, you will be generating $25,000 in surplus cashflow per month.
You apply for a Hybrid Loan with Blue River Finance and meet our lending requirements. Under a Hybrid Structure, providing you meet the requirements, you are approved for a loan of $900,000 for 12 months to be amortised down to $700,000 over the 12 months which allows you to refinance to a more cost effective lender. Your Establishment Fee is 2.5% of the loan amount and your repayments are $24,300 per month.
You apply for a Hybrid Loan with Blue River Finance and meet our lending requirements. Under a Hybrid Structure, providing you meet the requirements, you are approved for a loan of $900,000 for 12 months to be amortised down to $700,000 over the 12 months which allows you to refinance to a more cost effective lender. Your Establishment Fee is 2.5% of the loan amount and your repayments are $24,300 per month.
Property Secured Loans
You are a property investor who has found an excellent investment opportunity and wish to jump on it straight away. You would like to access the equity from one of the properties in your existing portfolio to cover the shortfall. The purchase price of the new property is $600,000. You have an existing property with $200,000 in debt in your portfolio – this asset is worth $700,000. You apply for a Primary Secured Loan for your new acquisition where you are able to borrow $420,000, and a Secondary Secured Loan over your existing property for the amount of $290,000 for a 3 month term for both loans as you are confident you will be able to refinance the loans shortly. You would like to capitalise the acquisition costs, any interest and fees. Providing you meet the requirements, Blue River Finance approve your loans. Your Establishment Fees on the Primary Secured Loan and Secondary Secured Loan are $8,750 and $6,380, respectively. Your total interest cost for the 3 months for both loans are $16,375.