Rent roll finance

Hi fellow ss brokers,

Anyone done a rent roll deal with rent roll as sole security lately? I have a friend who runs a strata management business with an existing rent roll who is looking to buy another rent roll and associated Ray white franchise. I know mac bank are big in this space but does anyone else know some other lenders, they are not keen to do the deal.

There is no other security available as he sold his house late last year to fund buyout of partners and has some cash from that to assist with this purchase.

Happy to refer on to anyone who is skilled in this area which I am not.
 
Hi Marty

I just had a couple of Vendor Fianancier mates buy two businesses with vendor finance. One a fish & chip shop, the other a nursery. The answer will definitely be "no" if he doesn't ask ;-)

Cheers, Paul
 
i personally haven't done a rent roll deal for almost a year now; but i know it's a Westpac thing- i went to one of their " Commercial talks- " late last year and they were offering rent roll package - From memory;P&I for max 5 years only. Max $5M and no 2nd mortgage.



Regards
Michael
 
Commercial and business has been all talk little action in the last 2 years.

Lots of chest thumping that we are " in the market" and still lending..................well thats true if your purchase has a 12 + plus rtn, a 10 year lease to an A+ tennant, a near new building, and you have enough supplementary income and cash to not actually need the loan :)

ta
rolf
 
Just for educational purpose, Marty can you let us know how you go with this deal..and which lender your frd end up with?

Thanks.

Regards
Michael
 
Probably late on the scene here but i own one in Brisbane and Mac Bank financed it and are still offering us good rates and terms for the next one.

I know Mac Bank are a dirty word in some Brokers circles but i guess it is horses for courses.
 
Hi all,

Thanks for your resposnes.

I am in discussions with bankwest and ANZ and waiting on the client to get me the actual figures. Bankwest are saying they will do 60% and ANZ 50% of rent roll valuation. Westpac require additional property as security from what I have read. Client is with macbank currently but they are not interested in extending further for the acquisition.

So like Rolf said they are all saying they are lending in the commercial space but in reality policies are so tight that it's only the cream that fits their model. I know from a development finance point of view it is just not happening for the smaller players. I think that is why there has been renewed focus on the home loan side of their businesses lately as they were expecting buisness lending to take off last year but funnily enough it hasn't (wonder why!!)....now they have excess cash to deploy and home loans seems to be the only safe place for them to put it to work. Sounds to me like they are all very conflicted.

Will keep you posted.

Thanks again to all of you who resposnded.
 
Hi Mick

This was the new Mac Bank and only last Oct but we do have another RR with the old MB so maybe special treatment as a existing client and a good looking one at that.
 
Hi fellow ss brokers,

Anyone done a rent roll deal with rent roll as sole security lately? I have a friend who runs a strata management business with an existing rent roll who is looking to buy another rent roll and associated Ray white franchise. I know mac bank are big in this space but does anyone else know some other lenders, they are not keen to do the deal.

There is no other security available as he sold his house late last year to fund buyout of partners and has some cash from that to assist with this purchase.

Happy to refer on to anyone who is skilled in this area which I am not.


I did some comparisons almost a year ago and come down to 2 options (there were more but due to cost, LVR etc) of CBA & ANZ. The deal was a quite messy and involved a parent offering property as additional security (no pain money from client). The client wanted to try CBA 1st due to the father having a long term relationship with then. 2 weeks later it was off to ANZ as the goal posts kept changing with CBA (nothing unusual there from my experience).
I have a great contact here in Melbourne but not sure if you being Sydney based would be an issue.



Regards
Steve
 
rent roll

Hi fellow ss brokers,

Anyone done a rent roll deal with rent roll as sole security lately? I have a friend who runs a strata management business with an existing rent roll who is looking to buy another rent roll and associated Ray white franchise. I know mac bank are big in this space but does anyone else know some other lenders, they are not keen to do the deal.

There is no other security available as he sold his house late last year to fund buyout of partners and has some cash from that to assist with this purchase.

Happy to refer on to anyone who is skilled in this area which I am not.

Hi I was hoping someone could direct me. I have been offered long established rent roll with over 900 managements. I have viewed all the profit and loss sstatements and other supporting documentation. Which lender would look at this. I do not currently have any property for security.


Any suggestions, can this even be done?
 
Hmmm it is always difficult to get a loan based on goodwill only - banks tend to like tried and true businesses like supermarket and pharmacy goodwill. Macquarie is probably your best best for this kind of cashflow lending but it's not cheap.
 
Update......we got close to sendng this to bankwest but in the end it wasn't quite within their guidlines and thankfully for my friend macbank came back to the party (with a bit of input on how to sell it to them from me. This involved changing the deal to two contracts, one for the rent roll and one for the franchise).

Another one no pay day on but I will put it down to experience and relationship.
 
Update......we got close to sendng this to bankwest but in the end it wasn't quite within their guidlines and thankfully for my friend macbank came back to the party (with a bit of input on how to sell it to them from me. This involved changing the deal to two contracts, one for the rent roll and one for the franchise).

Another one no pay day on but I will put it down to experience and relationship.

Mate of mine just bought a new rent roll to add to current business, cost was $1.3m and westpac funded the whole lot by re valuing his current rent roll, total Lvr 60ish
 
Mate of mine just bought a new rent roll to add to current business, cost was $1.3m and westpac funded the whole lot by re valuing his current rent roll, total Lvr 60ish

that 60 is about the right number

Where many buyers run into trouble is they see this great cashflow, and believe somehow they can get 100 % finance without additional security

ta
rolf
 
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