Background
An experienced property flipper with a construction background spotted a great opportunity to purchase an investment property and planned to complete cosmetic renovations before selling it within a short timeframe.
Challenges
As a sole income earner, the customer needed to borrow up to 80% LVR, and required a flexible, short-term solution that aligned with his project timeline – without slowing the purchase down.
Mitigants
With his financial adviser’s assistance, we thoroughly assessed the customer’s overall financial position and credit history and identified several mitigants:
- Good loan serviceability.
- Sufficient funds to cover renovation costs.
- Proven experience in construction and property flipping.
- A clear exit strategy.
- The property was located in a main city centre and only required cosmetic enhancements.
Solution
Working with the financial adviser, we structured a 12-month interest-only loan. The loan was settled swiftly, allowing the customer to secure the property, complete the renovations, and get it ready for sale, giving him the time and flexibility to execute his exit strategy.
LOAN AMOUNT
$592,744
INTEREST RATE
7.99% p.a.
TERM
12-month Interest Only
LVR
80%
CASE STUDY - BRIDGING HOME LOAN
“At Avanti Finance, we can tailor our Bridging Loans for property flipping scenarios to give your clients the flexibility to act quickly when the right opportunity comes along.
Typically, these loans range from 6 to 12 months and can be structured to suit the needs of the project. That might include interest-only or fully capitalised repayment structures.
We offer lending of up to 80% LVR on standard residential properties, depending on the deal, exit strategy, and client profile. And our fees are and transparent.
If you have clients requiring funding to invest in property, get in touch with your local Avanti Finance BDM.“
Harriet Wright
Business Development Manager, Auckland South and Waikato