The Mardent Group Finance

Overview for Presentation  Highlight the strategy financiers use to cross collateralise  Demonstrate strategy to increase property portfolio via “splitting of financiers”  Construction loans and renovations with finance.  Fundamentals of Commercial lending  Difference from residential lending  Fundamentals of how interest margins are calculated  Hand out review

Industry Update  Interest Rates will increase over  Easing of credit on residential owner occupied and investment  95% products being re-released into the market  Money markets have stabilized  Financiers comfortable with valuations flattening but holding  Banks becoming competitive for market share in both retail and commercial markets

Traditional Structure ( Cross Collateralization) Bank Investment Value $650k Loan $300k Owner Occupied Value $600k Loan $450k

Step 1: Asset Separation Lender A Owner occupied $600k Home loan separated Lender B Investment $650k Interest only $300k Line of Credit loan $220k

Step 2: Using LOC facility Line of Credit $220k Available Deposit and costs for 2 nd investment $50k New lender Value $200k Loan $160k Deposit and costs for 3 rd investment $50k New Lender Value $200k Loan $160k

Step 3: Creating Equity Lender D Investment loan (5 yrs Interest Only) Lender C Investment loan (5 yrs Interest Only) Lender B Investment loan 2 splits $120k in LOC Lender A (home loan) Value $600k Value $650k Value $200k

Construction and Renovating  Minor Renovations –No structural changes (cosmetic) – Use equity and re value at end of the process –Simple process  Borrowings on “total on completion valuation”. -Fixed Price Contracts -Easier Project Borrowing by switching to commercial / development funding

Commercial Funding  Difference between commercial and residential lending –Assessment of a client  Template review –Interest rate margin –Risk analysis –Commercial loans and review of facilities.

Thank You QUESTIONS????????? The Mardent Group PH: FX: