WHAT MOST REAL ESTATE INVESTORS DO NOT KNOW

In Blog by InvestaCrowd

 

What most sophisticated global investors do not know =  That you can now invest into senior debt in Australia replacing the position the commercial banks used to take.

What does this mean in simple terms ?

  • The Australian government has changed the rules restricting commercial banks from lending to real estate, meaning real estate companies need to go to the private investor market instead
  • Real estate companies are therefore willing to pay much higher interest rates to private lenders, than what they previously had to pay for essentially the same money
  • Your investment is secured in a 1st registered mortgage position against the propertythat you are loaning the money to, private investors get the same security (or better) than the banks used to require
  • Typically private investors were only able to access mezzanine/junior debt investments, which only get paid out of the project after the senior lenders. Mezzanine debt was typically paying 15% interest/year, but now some senior debt is also paying 15%. Same return with less risk.
  • The minimum investment term is as short as 6 months
  • If the real estate company borrowing the money defaults on any payments, investors have a registered security against the property and can repossess the property, which can then be sold allowing investors to receive their money back

InvestaCrowd and our partners (250 real estate companies and growing) have compiled detailed due diligence lists (commercial bank standard) lists to educate investors on how their investment is protected and why this opportunity now exists for investors.

To understand more about this unique investment situation or to speak with our team about these opportunities please email support@investacrowd.com