When property transactions have multiple moving parts, getting the structure right can be just as important as moving quickly.

In this scenario, a broker approached Clinch with clients purchasing two properties with settlement dates just nine days apart.

The timing made this a complex bridging finance scenario. The first property was due to settle within two weeks, with the second purchase settling just nine days later.

The first property would become the outgoing security, while some of the clients’ funds would only become available shortly before the second settlement.

For Ryan Horwitz and the Clinch team, the task was to understand how all of those pieces could work together.

“Successfully managing the transaction required careful coordination of both settlements, ensuring sufficient funds were available at the appropriate times while maintaining alignment of the overall lending structure throughout the process,” Ryan said.

Client Scenario

The scenario had several moving parts:

• Two property purchases with settlements nine days apart

• Just two weeks to complete the first settlement

• Client funds becoming available shortly before the second settlement

• A changing security position between the two purchases

• A structure that needed to remain within Clinch’s policy and LVR parameters

Timing was the immediate consideration. With the first settlement just two weeks away, there was a short window to structure, approve and document the facility.

As Ryan explained, “We had to figure out a way to fit the structure within policy and LVR parameters.”

Rather than looking at each moving part in isolation, the Clinch team worked through the complete transaction to determine how the two settlements could be supported within one overall structure.

The Clinch Solution

The solution brought the moving parts into one clear structure:

• A single facility supporting both property purchases

• Two sets of loan documents to accommodate the separate settlement dates

• The clients’ equity contribution factored into the structure

• The first property becoming the outgoing security

• The overall LVR remaining within Clinch’s lending parameters

“We carefully considered the client’s equity contribution and the fact that the first property would become the outgoing security,” Ryan said.

“This ensured the overall loan-to-value ratio remained within our lending parameters while supporting both purchases.”

The result was a structure that accommodated both settlement dates and the timing of the clients’ available funds.

The Outcome

Both property purchases settled successfully and on time.

Despite two closely timed settlements, a changing security position and funds becoming available at different stages of the transaction, the structure supported the clients through both purchases.

“The clients were extremely pleased with the smooth process and the certainty we were able to provide despite the complexity and tight deadlines involved,” Ryan said.

The Broker Partnership

A lending structure was only one part of getting the transaction over the line.

The broker also played a critical role in keeping everything moving.

“They were highly responsive, understood the process clearly and acted quickly whenever information or documentation was required,” Ryan said.

There was another timing consideration. The broker needed to take leave in the lead up to the second settlement. Rather than allowing that to disrupt the process, they made sure everything required from their side was completed in advance.

That preparation, combined with close coordination between the broker and Clinch, helped keep both settlements on track.

This was also the first deal Ryan had completed with the broker after initially connecting some time earlier over coffee and an introductory presentation.

The relationship has continued since, with Ryan and the broker remaining in contact and currently working through another deal together.

Have A Scenario That Needs A Closer Look?

We’ll take the time to understand the full picture and explore whether there is a workable way forward within our lending parameters.

Talk to the Clinch team about your scenario today.