Investing in mortgages - Business Property Loan No.2: a case study

Financial planning Written by Squirrel, May 14 2020

As mentioned in our first case study, we’re providing some analyses of our borrowers, so that you can find out more about the type of lending we are doing in our P2P mortgage space, which in turn gets passed on to you as an investment opportunity.

A reminder that our Business Property Loan Investment Class has a 5.00%p.a. variable return, with all loans secured by a first mortgage and the support of a Reserve Fund.

Case study 3

Investment class: Business Property Loans

Funding of a residential house in St Heliers, Auckland 

The second Business Property Loan on our peer-to-peer lending platform is for $410,000. The loan is secured over the house being renovated. The owner is adding an additional floor to the property and creating a separate title for it. The owner has funded half the renovation personally. The LVR of this loan is 10% - lots of equity in this loan! 

The loan was fully drawn at the start of the build in February 2020 and is scheduled for repayment in November 2020. At this stage, there is no indication that the build will be delayed by Covid-19, however that remains a minor risk.

This loan falls well inside all our credit policy parameters. This borrower has also provided a personal guarantee on the loan. This means the lending is in the name of an entity (business or trust), however there is someone standing behind the loan (typically a director/trustee) who has guaranteed that the loan will be paid back at a personal level.

You can invest in this loan now. The investor return is 5.00% p.a. variable, and you can find out lots more about this investment class from our investor handbook here.

This loan has the support offered by our Business Property Loan Reserve Fund which helps to protect investors from loan arrears and loan defaults.

You can invest into this mortgage now. The investor return is 5.0% p.a. variable, and you can find out lots more about this investment class here.

This loan has the protection offered by our Business Property Loan Reserve Fund which helps to protect investors from loan arrears and loan defaults.

Start investing now

We can help. Have a chat to one of our advisers.