Search results

Hi Nat r, In answer to your points: 1. The original investors will get a share of the % spread that Derivex is making. 2. Bankwest are not AAA rated but the income coming from interest deposited a t a bank is as the mortagage payments are secured against property and the interest is...

Hi Nat r, I am making the assumption that the original $950,000 has been generated from the original investor's funds. Derivex has stated that it takes 18 months from start to finish to build up the necessary capital to meet the first set of loans to investors. You are right however in the...

This is how I understand the process - in layman's terms 1. Derivex starts off with $950,000. 2. Derivex lends out $500,000 of the $950,000 and also receives a conduit fee of 5% or $25,000. 3. Derivex takes the remaining $475,000 ($950,000 - $500,000 + $25,000) and places this money in cash...

My take on it is (look at worst case scenario as a borrower): 1. Only borrow maximum 80% (include the 5% conduit fee in this 80% loan). 2. If Derivex go bust simply refinance with a bank (assuming this is not a wrap deal in Victoria) In comparison with my current interest only loan I...