Mezzanine loan solutions for property development
Grow Your Wealth With Our Private Mezzanine Loans Made For Developers and Investors
We provide you with the confidence and certainty you need to move your property development project forward. Firstly, you'll get a private mezzanine loan that is tailored for you and secondly it will be funded by a family office or wholesale fund that wants to see you win! Get the funding you need to thrive today and recycle your profits quicker to grow your wealth with our mezzanine solutions. Because we understand what property developers go through, we've broken our mezz finance solutions into two very distinct products. mezzanine minor and mezzanine major!
We've broken these down for you below, so you can get the right solution for you!
Urgent Mezzanine Funding
When Should Use Mezzanine Finance?
Mezzanine finance can be used in a number of different scenarios.
- When you have a shortage of equity to put into a project. Most Mezzanine finance will go up to 75% LVR, helping you reduce how much equity you need to put in.
- When you have a shortage of funds because the first mortgage lender only goes up to 65% LVR. The Mezzanine component can go up to 75% or 80% in some instances.
- When there is a cost blow out on the project and you need urgent funding!
- When you need to extract equity from a project so you can put those funds towards the acquisition of another site.
As you can see there a number of scenarios where mezzanine loans can be used.
Making Private Mezzanine Loans Easy
We have two categories of Mezzanine Loans
At Royce Stone Capital because of the family offices we work and wholesale funds we work with, we have developed two very unique mezzanine products. Mezzanine minor and mezzanine major. Each aims to expedite the funding process, to ensure you get funds as quickly as possible.
Mezzanine minor
- Sub $1M loan amount.
- No extneral valuation required.
- Up to 75% LVR (first and second mortgage combined).
Mezzanine major
- $1M plus loan amount
- Up to 75% LVR (first and second combined).
Common to both.
- Funding in as little as two weeks
- No financials or serviceability testing in most cases.
- Project must have at least $500k in profit.
- Mezzanine must be behind a bank or second tier.
Work with us today, to discover a new way of mezzanine funding
Urgent Mezzanine Funding
Applicaiton Process For Your Mezzanine Loan.
At Royce Stone Capital because of the family offices and wholesale funds we work with, we have a streamlined methodology of providing mezzanine loans that keeps the process simple. Our initial DD is comprised of the below.
- We require a borrowing entity, usually a company or trust.
- We require a copy of your ID.
- We require an exit plan, sale of asset or refinance.
- A project feasability on application.
- Copy of your first mortgage construciton loan facility
- Copy of your mortgage statement to date.
- A project valuation if required by our funding partners.
- A QS will be done on each draw down, and possibly on approval of your facility.
Work with us today, for an immediate mezzanine finance solution.
The Benefits Of Mezzanine Finance With RSC
The RSC Advantage: Mezzanine Loans Funded by Sydney and Melbourne wholesale funds and family offices.
A major advantage of working with RSC, is because we work with family offices and wholesale funds in Melbourne & Sydney. We have the ability to match your deal with the right funding partners, who are geographically located near you! This in turn gives you more favourable deal terms, a tailored loan made for you and urgent mezzanine funds delivered as needed. Let your property development move forward with certainty, by securing a mezzanine finance solution through RSC.
- Get the urgent mezzanine finance you need to complete your project, to then be able to quickly reinvest funds into your next development.
- Don't be limited by the limitations of the bank or conditions of typical bank funding.
- Secure an exclusive network of family offices and wholesale fund that want to see you win.
Contact us today, so we can get you the immediate mezzanine finance you need.
What is the cost of mezzanine finance?
Because mezzanine funding is second ranked in nature to bank funding or a first mortgage private lender, the pricing of mezzanine finance is higher. Generally speaking mezzanine capital can range from 16% p.a up to 28% p.a depending the risk of the deal. Most of the time the interest costs are capitalised until the property is sold. On completion of your property development and sale, the mezzanine portion of debt is paid after the senior debt holder is paid out first. Alternatively, a refinance can take place to pay out both parties.
When should i use mezzanine finance?
Mezzanine funding can be used in a number of scenarios. Typically, it is used when the bank will only do a 65% LVR loan, and the property developer has a 5% to 10% shortfall to get the project completed. In these cases mezzanine funding can take up the LVR to 70% or 75% of NRV.
NRV is Net Realizable Value, and you can read more about it here. It is typically the sale price, less tax and the cost to sell the asset.
Mezzanine capital can also be used when you have an equity shortfall or a cost blowout to a project.
What do i do if i have a funding shortfall for my property development?
If you have a funding shortfall for your property development, you may wish to consider using mezzanine funding as a solution. Mezzanine capital can provide funding for as short or as long as a period as you need, proving the LVRs of the project stack up.
Typically, mezzanine capital will go up to 70% to 75% of NRV, and in some cases 80% of NRV.
