Steven Acworth Private Mortgage: New Product, Process and APPROACH

WE’RE CONTINUALLY TRYING TO IMPROVE OUR PROFESSIONAL SERVICE IN THE AUSTRALIAN PRIVATE MORTGAGE MARKET FOR INVESTORS, BORROWERS AND FINANCE BROKERS.

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Since our last communication, we have analysed the Private First Mortgage industry, and noticed a glaring omission for "beginning to end" finance packaging for developers, which also provides significant incentive and comfort to first mortgage investors; coupled with continuing consultation, management and goal oriented strategy all the way.

As a result, we introduce "PHASED DEVELOPMENT FINANCE - a beginning to end process, from land financing, presales, structured/equity participation as required, and institutional exit.

WE ALSO EXPECT TO BE ABLE TO ANNOUNCE IN THE NEAR FUTURE A MAJOR NEW PARTNERSHIP A PARTNERSHIP THAT WILL NOT ONLY FIT SNUGLY INTO OUR "PHASED DEVELOPMENT FINANCE", BUT IN GENERAL FOR STANDARD PRIVATE FIRST MORTGAGE LOANS, NOT ONLY PROVIDE RISK MITIGATION FOR INVESTORS BUT ASSIST BORROWERS WITH CREDIT ENHANCEMENT.

WATCH THIS SPACE!

PHASED DEVELOPMENT FINANCE

In addition to standard private mortgage lending, our phased development finance strategy and process is in three parts.

1. Settle the refinance or purchase of land via private first mortgage loan based on assessed valuation - say 50-60% LVR depending on location and usual criteria. Remember, we DO NOT always require an external valuation for this purpose.

2. Applicant obtains presales sufficient for institutional take out. We may also assist in this capacity if required.

3. LRPM Simultaneously completes due diligence and Information Memoranda for two purposes

a. if required, structured Preferred Equity/JV/Mezzanine participation from an external investor introduced by us (or for presentation by you), and

b. Institutional development finance to discharge the existing LRPM first mortgage, and provide completion funding at a pricing based on funds utilised considerably lower than that available in the private market, which is generally based on a fully drawn advance, and at a much higher interest rate, for accounting and calculation of interest purposes.

In other words, taking this orderly approach may save applicants considerable

time and stress, by providing a professional approach to structured finance and institutional development funding,
COST, taking the proposal from the more expensive private market to an institutional standard, AND
provide comfort to private first mortgage investors, increasing likelihood of positive response