You’ve seen the pictures, read the terms and looked through the valuation yet you’re still scratching your head?

Why is the LVR so low?

Watch the video below to find out!

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For an appointment with a Product Specialist call the office on 1300 652 158.

Daniel: Daniel from AR Mortgages, and I’m here with Julia. Julia,
what’s the topic today?

Julia: Today’s topic is based around our property in Parramatta. Last
week it was open for subscription, and I got a lot of feedback,
a lot of emails, and the main thing that kept popping up is,
“Why is the LVR so low?” So I’ve dragged Daniel here today to
answer that very question.

Daniel: Dragged me. Yes, I was just sitting over there before then.
First of all, it is what it is. I mean, just because you’ve got
a property that’s worth, say, 10 million bucks, it doesn’t mean
you need to borrow $9 million against it. There are situations
that we look for. We look for deals where there’s great
security, but the conditions around the borrower don’t allow
that loan to fit into a Bank Star facility.

Julia: Right.

Daniel: For example, the borrower may need money against a security in
a hurry, but yet they’ve got great equity.

Julia: Yeah.

Daniel: They may need to settle in as little as 48 hours or 24 hours.

Julia: Yeah. Why are you more flexible than a bank? Why would a bank
not do it?

Daniel: We’re more of an asset-based lender. So we’ll discount, if you
like, the conditions around the borrower and really just focus
on the asset and making sure that, yes, we do have an exit
strategy, or the borrower has an exit strategy or a way to pay
back the money. But we’re not as big on the red tape side of it.
A bank doesn’t really want to get involved in liquidating
assets, whereas we’re more willing to, and we’re more focused on
that end game, so making sure that we can get out purely based
on the asset.

Julia: Okay.

Daniel: Really, in this situation, the bank won’t do the deal. When I
say this situation, I mean the Parramatta situation.

Julia: Yeah.

Daniel: The bank won’t do the deal because the conditions surrounding
the borrower don’t, in any way, shape, or form, fit their
criteria.

Julia: Right.

Daniel: There’s not really a catch to it. It is what it is. It’s a
great security, but you’ve just got to understand that if you’re
lending on this type of property, your exit strategy may be, at
the end of the 12 months, will be liquidating the asset.

Julia: Right.

Daniel: The bank doesn’t necessarily consider that option.

Julia: Okay.

Daniel: Okay?

Julia: Great. Thanks, Daniel. if you’d like an appointment with
Daniel, call the office on the 1300 number. Thanks for watching.

Daniel: Thanks for watching.

AR Mortgages Pty Ltd ACN 158 826 585 is holder of Australian Financial Services Licence 425073.  This investment opportunity is open to wholesale or sophisticated investors only as defined under the Corporations Act 2001.