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.
- Minimum Term – 6 months
- Maximum Term – 36 months
- Minimum APR – 13 %
- Maximum APR – 30 %
- 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.