Case Studies

An Auckland Apartment - Building and Renovation Loan

The Situation 

A quick do-up and on-sell project on an Auckland apartment, where the borrower was unable to obtain bank funding.

The Solution

DBR assisted with a building and renovation loan of $750,000, with DBR and broker fees amounting to just $22,500 compared to real estate agent fees of $60,000. After factoring in the finance fees, agent’s fee and refurbishment costs into his development costs (all tax deductible), the borrower walked away with a $100,000 profit, despite having to pay non-bank rates and fees.

Home Renovation - Low Doc Mortgage Lending

The Situation

A home renovation project that had dragged on for close to 30 years, this borrower (a builder himself) approached his trading bank to top up his mortgage against his 5-bedroom, 1930’s weatherboard bungalow in Auckland’s North Shore. Because his financials were not up to date, the bank declined his request.

The Solution

DBR arranged the refinance of the bank mortgage, along with the additional funds needed to complete the renovations, with a building and construction loan / low doc mortgage.  The borrower was able to maximise the value of his property and take advantage of the rising property prices in Auckland to market his home for sale.

Working Capital Finance - Low Doc Business Finance / Equity Release

The Situation

A well-respected business enjoying an excellent reputation in both New Zealand and Australia, this business owner has been involved in the fashion industry for over 33 years. With the rising cost of manufacturing in New Zealand, the business had recently undergone a complete restructure, shifting its clothing manufacturing to China, whilst the design, marketing and distribution functions remained in New Zealand. Despite a 26% exposure on the client’s residential home, the bank was unwilling to provide additional facilities for business finance and had forced the company to make principal payments towards its current loan.

The Solution

With little or no financials, the business required a low doc mortgage / equity release loan. By taking security over the property owned by the business and using the property to source additional finance necessary in obtaining the equity release loan / low doc mortgage, DBR not only repaid the bank’s exposure, but financed a further $500k working capital loan. The client was able to trade on and over the 12 month term was able to sell the property.Debt Consolidation Mortgage

Debt Consolidation Mortgage

The Situation

Going through some tough financial and personal difficulties, this client approached DBR on the day of his mortgagee sale for a refinance approval / debt consolidation mortgage. Given the timeframes involved and the potential losses the client would face if the bank did sell one of his properties, immediate action was required. The client had equity in the property being sold as well as several other properties which were funded by another bank. In addition to this the exit strategy was strong but would require some input and management from DBR.

The Solution

DBR provided the client with a loan offer with no pre-conditions so that this offer, being "unconditional", could be given to the bank's lawyers and the mortgagee sale auction postponed at the last minute. Following settlement of DBR's debt consolidation mortgage shortly thereafter, the client obtained a sale of the property at market value with a 10% deposit paid.

Bridging Finance 

The Situation

Clients were under pressure with their mainstream bank and needed to refinance and debt consolidate pending the sale of their home which was listed for sale. They had very strong equity, however finances had become strained as a result of a suffering business.

The Solution

DBR provided financial relief, giving them time to sell their home, with a loan amount of $605,000 and a loan to value ratio of 31%.

Construction Finance

The Situation

This spec builder building on builder’s terms needed to settle before completion of the property. 

The Solution

DBR funded the settlement of the land (the house was 60% built) and provided construction finance on a cost to complete basis against DBR inspections.  Very few conditions apart from a DBR inspecting the property and meeting with the builder. Loan amount of $330,000 and a loan to value ratio of 66% on completed value.

Bad Credit Loan Approvals 

The Situation

This borrower had several credit issues, the business was put in administration and the bank was mortgagee selling.

The Solution

DBR provided finance to refinance the bank and provide some working capital to give them time to sort their credit issues and reduce debt by selling down assets. A loan amount of $850,000 and a loan to value ratio of 65%.

Development Finance

DBR recently completed a 6 unit commercial development in Auckland.  5 of the 6 units were pre-sold.  DBR’s loan was circa $2.4m.
 
The developers came to DBR as they wished to build it themselves and the LVR was too high for the banks to consider given it was 75%.
 
The project went extremely well, being built essentially on time and on budget, the developers proving themselves as excellent operators.
 
Here is what the borrowers had to say:
 
We found DBR to be professional and extremely efficient in all our dealings with them.
Once construction started the drawdown process operated seamlessly and so removed any potential stress that might result  from delays in this area.

We would be very happy to work with DBR again for development funding  and therefore would have no hesitation in recommending them.