Mezzanine Loans

Mezzanine/Commercial Property Finance – 100 % loans

When purchasing a commercial or industrial property, the banks and lenders will normally only provide you 70 % of the purchase price as a loan. You as the buyer must put in at least 30 % of the property purchase price as a deposit.

Our mezzanine lenders will put in your deposit for a 30 % share of the ‘upside’ profit at year 3 of the loan. At year 3 they wish to exit the loan and so you will have to find an alternative lender to refund the 30 % deposit and also pay them out their 30 % profit share.

The advantage to you is that if you see a good property but do not have the required bank deposit, you can still buy the property on the OPM basis…Other People’s Money. You will be 100 % owner and manage the property. Very good for persons that do not have the required funding to go into property investments and have identified good opportunities.

Cost Schedule

  • Minimum Term – 6 months
  • Maximum Term – 36 months
  • Minimum APR – 13 %
  • Maximum APR – 30 %

Example :

  • Loan                         R 1 million
  • Term                        R 1 year
  • APR                           13 %
  • Repayment         R 1 130 000

Subject to lenders Terms and Conditions at time of quote.

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