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Invest2021-08-30T00:41:42+00:00

We meet every borrower and inspect every security property personally prior to approving a loan.

When you invest with Property Funding you have full loan disclosure. You will know who the borrower is, for what purpose the loan is being made, and exactly where the security property is located. You are the one who selects what first mortgage you want to be part of. You may choose to only invest in farms, within certain cities, or even just in the first home buyers nz market. It’s totally up to you.

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HOW IT WORKS

Campbell Rural Investments Limited “Campbell” approached Property Funding seeking $900,000 secured by first mortgage over a Waikato farm with a market value of $2,000,000. The funds were used to refinance Campbell’s existing $500,000 mortgage, plus a further $400,000 to cover the cost of subdividing 4 lifestyle blocks. Independent real estate appraisals of the property indicated that once subdivided each lifestyle block would have a market value of at least $250,000.

Campbell’s bank declined extending the existing mortgage by a further $400,000 on the grounds that the company’s annual income was only $70,000. In contrast, Property Funding saw the opportunity to help Campbell unlock value from the property by funding the subdivision.

*Note, some key details have been changed including names of investors and borrowers to maintain privacy.

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GETTING STARTED

Investing in first mortgages is straight forward.

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FREQUENTLY ASKED QUESTIONS

What type of an investor do I qualify as?2021-09-06T21:36:52+00:00

Wholesale Investor

To see if you qualify as a Wholesale Investor please read the Wholesale Investor Criteria below.  Click here to view the Wholesale Investor Criteria.

Eligible Investor

An eligible investor is a person who has previous experience dealing in financial products that enables them to sufficiently assess the merits and risks of a transaction. They can also assess what information they need in relation to a lending proposal and whether they have received sufficient information from Property Funding.

What entities can invest?2021-09-06T21:37:37+00:00

You can invest using any legal entity, provided you are a Wholesale or Eligible Investor and compliant with all applicable regulatory requirements.

What is Anti Money Laundering (AML)?2021-09-06T21:45:21+00:00

The AML/CFT Act 2009 (The Act) came into effect on 30 June 2013 and Property Funding is legally required to confirm the identity of its Investors and Borrowers.  We need to collect information on Individuals, Companies, Trusts and Partnerships.  We will also need to determine the Source of Wealth for a Trust.

How does the security structure work?2021-09-06T21:38:04+00:00

Property Funding will, as agent, and on behalf of the investors in a loan hold a mortgage over the property of the borrower. Property Funding and the investors enter Management and Participation Deeds which deal with the making of the investment, the management of that loan and the mortgage security. These funds cannot be used for any purpose other than the making of that loan. All securities and documentation are prepared and checked by our solicitors who also ensure that the mortgage is registered.

Does Property Funding provide investment advice?2021-09-06T21:42:43+00:00

No. We are only permitted to provide general product advice.  You should seek your own independent financial advice before deciding to proceed with a first mortgage investment.

Are there any risks?2021-09-06T21:42:50+00:00

Like any investment there are risks. We have measures in place to manage risks and we have identified here what we believe to be the risks with this type of investment.

Can I get my money back before maturity?2021-09-06T21:38:56+00:00

First mortgage investments are for a fixed term and your principal will remain invested until the repayment by the borrower. However, we can reoffer your investment for sale to other investors before maturity to enable early repayment.

What happens if the borrower does not make their monthly interest payments?2021-09-06T21:39:13+00:00

We will work with borrowers to promptly resolve any payment issues.  In the event a borrower continues to miss interest payments, we will take all necessary steps including the sale of property to recover your investment.

Does Property Funding or its directors invest in any of the mortgages?2021-09-06T21:40:06+00:00

Yes.  Both Blair and Miles and their extended family co-invest in specific loans alongside our other investors.

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BUILDING PARTNERSHIPS TOGETHER

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