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2016 CASE STUDY NEWSLETTERPMFM | CASE STUDY NEWSLETTER

Private Mortgage Funding & Management (PMFM) was established in 1995 and specialises in the funding and management of Private Mortgages. PMFM is Western Australia’s only licensed boutique funding manager. We offer a rapid customised individual assessment of your finance or investment needs. We arrange and manage contributory mortgages where the investor operates as a mortgagee. Private Mortgages offer a higher rate of interest, albeit at a higher degree of risk. For those wishing to borrow, a Private Mortgage may be your solution to business working capital, property purchase or refinance needs. Continue reading to gain a full understanding of our capabilities as a fund manager and see if we can offer you a solution.PMFM | CASE STUDY NEWSLETTER

A newly married couple returned from a 12 months overseas sabbatical.Both had employment history before departing overseas, but were looking to re-start. They were seeking an owner occupied purchase in a desired Perth metro suburb that required immediate settlement and institutional funding was not available due to pending employment. Due to substantial cash reserves from previous house sales and a strong Take Out Plan to re-commence work and finalise their family inheritance, we were able to offer a regulated advance. The Take Out Plan involved re- commencing work and finalising family estate inheritance (which was verified).$130,000 | 30% LVR | 12 month term | 8.95% p.a. | 12 month Interest ReservePMFM | CASE STUDY NEWSLETTER

DEVELOPMENT EQUITY DEVELOPMENT WORKING UNIT TRUST DEVELOPMENTRELEASE CAPITAL A syndicate was purchasing aA mid-sized property A property developer was residential land bank. It wasdeveloper with residual stock undertaking a specialised structured as a Unit Trustwas purchasing a residential community development. The with both Resident and non-investment property pending development was designed Resident investors. Previousanother sale. The freehold and documented, but smaller scale developmentasset was representing part of Development Approval was had been successfullythe development profit. pending. Once the new titles completed. InstitutionalInstitutional lenders were were produced, sales would funding was not available dueunwilling to assist due to the commence through house and to current credit policies,short-term nature of the land packages. Institutional market issues and that it wasmortgage and because of the lenders were unwilling to a Unit Trust.zero residual debt. assist due to the lack of pre- sales. We offered an unregulatedWe offered an unregulated advance. The landbank wasadvance due to the We offered an unregulated well located in a residentialexperienced property advance as a result of the “infill” development site thatbackground of the developer. experienced property was shovel ready. The TakeThe Take Out Plan was to background of the client and Out Plan was to obtainmarket the property as part other freehold property Development Approval,of the final sales and finalise assets. The working capital develop residential lots withthe advance. was required for outstanding equity and then re pay the tax issues and general advance.$195,000 | 60% LVR| 12 development costs. The Takemonth term | 8.95% p.a. | Out Plan was to finalise the $1,000,000 | 55% LVR| 1212 month Interest Reserve development. month term | 8.95% p.a. | 12 month Interest Reserve $500,000 | 35% LVR| 12 month term | 8.95% p.a. | 12 month Interest ReservePMFM | CASE STUDY NEWSLETTER

A retired couple was purchasing land (a triplex site, to build and sell one, and retain the other two for rental). Their other investment property, that they had a bank loan for, was family occupied. The cash reserve from theprevious property sale was to be used for the building contract. Institutional funding was not available due to no pre-sales and capacity. The solution was to offer a regulated advance on the investment property. The scenario was assessed as being Responsible given it was viable, with strong equity and a logical Take Out Plan. The Plan was to undertake development and repay the advance from one unit sale. $300,000 | 60% LVR | 12 month term | 8.95% p.a. | 12 month Interest ReservePMFM | CASE STUDY NEWSLETTER

SUBDIVISION WORKING CAPITAL An Investor/developer was undertaking land subdivision. The institutional construction and drawdown finance had been approved. They required additional working capital to complete the preliminary works. The preliminary works were a condition precedent to drawing down institutional funding. The solution was to offer an unregulated advance to the corporate borrower. The Take Out Plan was to undertake development and repay the advance from sales proceeds. $215,000 | 55% LVR| 12 month term | 8.95% p.a. | 12 month Interest Reserve PROPERTY AMALGAMATION Investors were purchasing residential properties for future development. The complex was jointly owned in a Unit Trust structure. The equity was being contributed from investors own resources and existing facilities. Institutional lenders were unwilling to assist due to the structure and macro servicing issues of the investor’s personal debt. We offered an unregulated advance as the properties were well locates with current rental potential. $1,050,000 | 65% LVR| 12 month term | 8.95% p.a. | 12 month Interest Reserve LANDBANK FUNDING A property developer was acquiring land banks for future development. The client specialised in small scale residential land, funded through a combination of own resources and equity funding. Institutional lenders were unwilling to assist due to the lack of pre-sales. The solution was an unregulated advance as the developer had a track record of similar successful products. The Take Out Plan involved creating titles and selling as house and land packages. $1555,000 | 55% LVR| 12 month term | 8.95% p.a. | 12 month Interest ReservePMFM | CASE STUDY NEWSLETTER

RESIDENTIAL RESIDENTIAL TRADE DOWNA self employed business operator was purchasing An older retired couple were downsizing aa residence with development potential. This well residential owner occupied purchase. They werelocated northern Perth beachside suburb was self-funded retirees and well asset backed. Ancapable of subdivision into two Lots, but was not unconditional offer on a new residence wasyet approved. The existing residence was freehold. accepted. However, bank funding was declined dueThe peak debt would temporarily exceed servicing to their owner occupied status, their age, incomestandards. and no end debt.We offered a regulated advance as it was an owner We offered a regulated advance as the existingoccupied, although the rear lot was to be residence was freehold and they had a substantialsubdivided. The owner had equity from deposit from existing cash reserves. The Take Outsimulataneous settlement of existing residences. Plan was to sell the larger residence and repay theThe Take Out Plan involved obtaining Development bridging advance in full.Approval, splitting and selling the rear lot (whichwould clear proposed debt). $2,000,000 | 35% LVR| 12 month term | 8.95% p.a. | 12 month Interest Reserve$1,250,000 | 60% LVR| 12 month term | 8.95%p.a. | 12 month Interest ReservePMFM | CASE STUDY NEWSLETTER

PMFM | CASE STUDY NEWSLETTER

PMFM | CASE STUDY NEWSLETTER

PMFM | CASE STUDY NEWSLETTER

PMFM | CASE STUDY NEWSLETTER

PMFM | CASE STUDY NEWSLETTER