Let’s talk about using Short Term Business Loans for Properties in Rescission. One of our specialities at HomeSec Business Finance is funding urgent loans for companies that are in rescission on a property purchase. Many buyers think they have their finance in place, only to discover that it falls through at the last minute. This means, if they cannot access funds to settle the property on time, they could lose their entire deposit. Plus, it may also be an opportunity too good to miss that they are about to lose.
Who Else Can Give You That Amount of Money in 1 Day?
At HomeSec, we can save the day by making funds immediately available so the purchase can settle in under 24 hours. This then allows you a few months to secure more long-term finance without losing the property to another buyer.
Now more than ever with lockdowns, it is important to have this short term finance tool at your disposal, as we are seeing delays everywhere.
We should also mention that we not only lend in Australia. We also lend in New Zealand too. Recently we had a New Zealand broker come to us with a client who needed $1,600,000 to finance a property purchase in Auckland. The buyer did not have his bank finance in order, and if he did not settle in 2 days, he would have lost a sizeable deposit and missed out on this very strategic purchase.
You see, he already owned the property next door and was planning on developing both together. So, it would have been a huge shame if he had have missed out on this opportunity! HomeSec Business Finance was able to fund the purchase in under 24 hours. As a result, the client was able to settle the property by the deadline. He now has three months to breathe easy and get his conventional longer-term finance arranged. When that happens, the long term finance simply pays our loan out, and that’s the end of our involvement.
Another big reason why property loans and secured business loans are being held up is because of valuers. Last month, we had a friend in the industry who got a valuation done on a property in Melbourne. It took three weeks!
The reason for this is because of Covid restrictions, as they are having difficulties accessing properties due to lockdowns. As a result, they are backlogged with valuations, and many valuers are taking weeks to do one.
HomeSec does NOT do valuations! The other private lenders do.
This means that most private lenders are in reality, taking two-three weeks to fund a loan. So when some of these lenders are saying that they settle in three-five days, they are not!
In actual fact, they are only approving the loans when the valuation comes in. What happens if you don’t have that long? Even if you did have a week or 3 up your sleeve, that’s a long and nervous wait for the buyer. Then what happens if the valuation comes in lower than expected? You’ve lost all that time, for nothing.
SAFE ‘NO-NONSENSE’ SOLUTIONS – If you or a client have a property in rescission, do not lose sleep and do not lose any more time! It’s HomeSec to the rescue with a short term Property Purchase Loan. Especially at the moment, during these difficult times with lockdowns.
We fund from $20,000 to $5,000,000, and we do it in 24 hours. (and with NO valuations or financials)