Exceeding investor expectations: A case study in flexible investments
Sometimes investments don’t always go to plan. The impacts can potentially be traumatic for the borrower, the financier can lose out and investors can see their returns diminished or evaporated all together.
That’s why strong leadership from the financier is critical when conducting business. An agile financier can adapt to changing situations and create flexible solutions should the worst happen.
A changing situation
Taking an investment loan out on a property in Palm Beach, Queensland, the first four months payments were met without issue. That’s when the situation changed - the borrower’s business began experiencing troubles and for the first time they defaulted on a payment.
Once the default was triggered, the AMF in-house Solicitor Kasey quickly issued the required notices and revised interest rates, then met with the borrower to discuss ways they could adapt to the situation.
AMF used their mortgage powers to register caveats over each property ensuring that funds were received from each sale.
Fast and innovative solution
The borrower intended on selling three of their existing property assets in order to continue meeting their loan repayments. To ensure this happened, AMF placed caveats against each of the properties. This solution meant that the borrower could continue with the loan, and AMF would receive guaranteed funds from the settlement of each property.
Just eight weeks later, AMF received its first settlement funds from the sale of the first of the borrower's properties meaning they had not only brought the loan payments up to date but were ahead.
Outstanding result for everyone
Over the next three months, the borrower successfully sold the remaining two properties and paid the loan out in full three months early. The adjusted interest rates along with the early completion of the loan meant that the borrower met their commitment, AMF serviced the loan and provided a collaborative customer experience and the investors received an outstanding 10.64% return, a full 2% above target.
AMF are experienced lenders able to adapt to any situation, if you have an opportunity you would like to explore or invest with us please contact us today