mortgage backed commercial loans

Oak Laurel | Finance brokers 

Investors, do you want to invest in mortgage backed commercial loans? Register your interest.


Oak Laurel  – Invest in direct mortgage placements / private mortgages

Investing in commercial private mortgages secured by a mortgage over real property can be a low risk high return option for savvy investors.

Oak Laurel has clients looking for private commercial mortgages to fund a range of commercial activities that you can invest in for risk weighted high returns.

Invest in commercial property mortgages

Invest in commercial property development mortgages



direct mortgage placements - private mortgages

Find out about investing private mortgages

Register your interest.



OAK LAUREL

Oak Laurel Mortgage Broker

Benefit from our experience


Register your interest to invest in commercial private mortgages!

Private Mortgage Investment, Placement & Management Services

Become a private lender. Be the bank!

Direct mortgage placements are for sophisticated investors looking for low risk and high return on their capital investment. If this is what you are looking for then consider becoming a private mortgage lender.

Both private lending and traditional banking are regulated prudentially in Australia, but by different government regulators. Private lending is in certain cases regulated by the Australian Securities & Investments Commission (“ASIC”), while the banks are regulated by the Australian Prudential Regulation Authority (“APRA”).

There is an opertunity for savvy investors to invest in private commercial security backed mortgages for high fixed rate returns over a range of loan terms.

In the normal banking relationship, the investor deposits funds with the bank and the borrower obtains finance from the bank. The investor is paid an agreed return on their funds and does not know any of the details of who their funds were lent or under what conditions.

A private mortgage is funding from a private lender instead of a bank or non-bank lender direct to the borrower. The borrower offers real estate as security for the loan via a publicly recorded (sometimes non-publicly recorded) mortgage. The loan is secured by a mortgage that is evidenced by an original loan agreement. The mortgage over real property secures the loan agreement in the event of a default by the borrower. This is similar to bank lending but funds are provided by a private individual more directly to a borrower.

 

After the Global Financial Crisis the banking sector has lower levels of liquidity and tightened lending criteria. This has left an opertunity for private mortgages to lend to commercial clients that would have previously obtained bank funding.

Returns through private mortgages are typically higher than those through investing in commercial bank bills / loans that typically return 3.5 – 4% above the Reserve Bank of Australia cash rate.

Commercial borrowers taking private mortgages (secured by a first registered mortgage against real property assets) typically accept interest rates of between 8% per annum and 18% per annum. Interest rates on private mortgages against a second registered mortgage can be even higher.

Current returns from 1st Mortgages are around 8.5% p.a. 

Current returns from 2nd Mortgages returns from 14% p.a.

If you are a Sophisticated Investor looking for a low risk, high return, on your valuable investment capital, consider becoming a Private Lender

We can source deals for you including managing your interest and providing a suitable ‘Exit Strategy’.

The borrower, typically comes to a private mortgage lender because they have been told ‘no’ by the normal banks and institutional lenders. These institutional lenders are offering conventional mortgages such as consumer home loans and investment loans. These types of lenders have a long list of criteria that the borrower and property must meet before qualifying for a mortgage.

Typically borrowers that have some past credit issues (defaults, etc..), have difficulty providing the evidence of income (such as business owners that have not done their financials) or the real estate that they are purchasing or refinancing is unusual (unfinished house, rural, etc…).

Furthermore, some developers come to private mortgage lenders to increase their loan to value ratio or speed up the loan process to get their project underway.

Become an investor with Oak Laurel
Lending on private mortgages can be extremely profitable and financially rewarding. Oak Laurel finance facilitates private mortgage lending transactions between lenders and commercial borrowers.

Anyone can be a private lender. If you are looking for great returns and low risk and have funds to invest private lending could be a good investment choice for you.

Your funds are secured by a registered mortgage over real property in the same way that the banks and other lenders take a mortgage. All of the mortgage documents including the security registration are done by solicitors that specialise in these types of transactions. The solicitor prepares the documents to ensure that your mortgage is secured the best possible way. All of the solicitors’ fees for preparing and registering the documents and mortgage are paid for by the borrower.

Invest in property development mezzanine finance mortgages

Property development projects are vetted and valued appropriately.

  • Invest in mezzanine funding for development projects and sites including:
  • Short-to-medium term funding, usually with a clearly defined exit strategy;
  • Equity Co-investment; and
  • Equity (or preferred equity) co-investments in development projects or land bank site or upside via development or value adding activities.
Crowdfunding Property Development Investment Opportunities

We believe everyone should be able to invest in property development and gain the rewards that this can bring.

We provide the opertunity for everyone to invest in Australian property developments where opportunities arise. Typical opportunities include:

– Equity participation for property development projects
– Short term loans

You choose when and where you invest and can do so for as little as $5,000 with no upper limit.



Need development finance for a project you have now?

Oak Laurel can help you get your project funded. Find out more about the property development finance that we can arrange for you.




Invest in real estate

Investing directly in real estate can be a very profitable when the property is carefully selected. Use a property advisor for your next purchase and maximise your returns.



Oak Laurel Finance Brokers

Oak Laurel Mortgage Broker