Invest in First Mortgage Fund to Earn Monthly Income

14 Oct, 2021

Our next few blog articles will feature recent loan investments made by Angas Prime using funds pooled by its investors.

The loan summaries will give readers of the Angas Prime Blog a flavour of recent transactions. Some are one off transactions which is not uncommon. Some are loans to property developers who deal regularly with Angas Prime. Some borrowers deal direct with Angas Prime. Many transactions are introduced via Angas Prime’s accredited broker panel.

Readers will note that certain features are common to the loans selected. Security is taken over real estate in Australia comprising a registered first mortgage. Other features are quite diverse such as loan size (large and small), geographic location and Loan to Valuation Ratio. Angas Prime is a bespoke lender which tailors each loan – even if a borrower has borrowed and repaid funds a dozen times before. Angas Prime assesses each proposal on its merits. It is sensible practice to encourage repeat business for major clients. Angas Prime has declined to write loans for the biggest customer if it is not comfortable with features of the security site being offered or if the terms do not permit Angas Prime to achieve its Target Rate of Return.

As an asset-based lender, Angas Prime places primary reliance on the first mortgage security that is taken. There is no consumer lending. All loans must be for business purposes. The nature of the business purpose can vary from loan to loan. Most Angas Prime loans are made to property developers who are willing to pay a higher interest for the certainty of Angas Prime’s loan approval and management practices. Sometimes Angas Prime will assist a borrower to acquire a site for development. Sometimes a loan will be a bridging facility whilst neighbouring sites are acquired and consolidated. Sometimes a site is already held and Angas Prime provides civil works funding to put in roads and services to enable multiple titles to be created and sold to repay the loan. In a small number of cases, construction funding is advanced to erect houses or apartments for sale.

In other cases, the security property is ancillary to the loan purpose. Short term loan finance is advanced against real estate in order to achieve other goals. In one example in this edition, an engineer in the services industry needed short term funding in a hurry in order to acquire a “bolt on” business that had come onto the market. So long as the loan parameters are met, the real estate security is sufficient, there is nothing adverse about the borrower’s character, the loan is for legitimate business purposes and the loan terms are acceptable then a loan proposal will be entertained. The case histories on the following pages should assist readers gain some insights into the types of loans funded by pooled investments in Angas Prime.

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