Its no longer a secret of how the Wealthiest Families Invest and " Become the Bank" to others, through direct first mortgage investment and lending as part of a diversified investment portfolio. Those familiar with the asset class say its where they get the Highest “Genuine Risk Adjusted Returns” by taking a position in Direct Mortgages investment and or Pooled Mortgages with a prudent and experienced fund manager or mortgage originator.
Acumen Finance is a leader in online commercial property lending and banking disruptive technology. Acumen Finance will be ultimately blockchain secured as its Technology is proven and evolves.
All loans currently written are backed by mortgage over bricks and mortar with borrowers of verified pedigree and capacity to repay. We partner with private family’s and offshore funds and other alternative liquid sources not known in the wider market. We add value by doing the initial legwork and initial Due Diligence on a lending opportunity and then get the borrower signed up exclusively to pave the way for the transaction to be placed with a Tier 1, Tier 2 or Tier 3 Lender.
The Opportunity and flow of lending deals has been compounding post the global financial crisis and still some 10 years later. There has been ongoing contraction and consolidation in Commercial Mortgage lending sources and available capital for Australian business borrowers with commercial loan requests backed by property. There are new breeds of lenders entering the market and Acumen Finance tracks their appetite and liquidity.
The active lending market is broken down typically into the following Segments, Tiers or Pillars
1. Tier One (Banks) (APRA – REGULATED)
2. Tier Two (Managed Investment Schemes, ASIC, boutique funds who lend)
3. Tier Three (Private Lenders, Sophisticated Investors, Self Managed Super Funds (SMSF) and or Hedge Funds (Sophisticated Investor Rules Apply)
Lending is dominated by Australian major Banks, who are thought to provide some 75% of new lending in the commercial finance markets. The remaining share of market participants acting as a lender is extremely fragmented and can vary dramatically in the size, capacity and focus of the operation as well as the professionalism of the people operating it.
Majority of the Tier 2 and Tier 3 lenders have no alternative product to offer nor promote any style of cross sell for complimentary products and services.
Australian Banks are demanding lower risk, higher returns, shorter terms and more restrictive covenants. Commercial property values were rising following the GFC and have been since. There is of course some contractions now in 2019 in the finance market due to the property prices falling across the country.
This is an excellent opportunity to existing or upcoming direct private lenders. This is because any contraction in house prices creates many mismatches with the debt required to fund the market. The Banks will typically in each cycle loose some big loans and write some dumb deals when conditions and policy is bullish. But then scale back credit policy to "make the good clients"wash out the bad ones in times like this whereby the Royal Commission has paved an excuse for more shuffling of balance sheet's as opposed to writing business.
There is of course other factors at play in the market but the above does have some mechanical effect and creates am impact in the way that credit will be allocated from Banks and services around financial planning firms and products.
But this time the markets alter ego is different, the Banks are facing the threat of the rise of the Fintech's platforms and non-full-service banks coming into the space and opening of less restrictive capital controls. Also, the Royal Commission has completely changed the major lenders format for how they engage new or existing business and also how they rationalise the property lending. They have to actually rethink allot of product which was geared for investor return and not the benefit of the consumer or end customer in mind.
Seems the sleight of hand is no longer a commercial opportunity cascading down from the banks and now there needs to be fresh innovation around actual value adding. In Acumen's professional opinion the Banks are simply to slow, cumbersome and have to much internal politics to work through for any real commercial changes to take place in the short to medium term.
Bank appetites are being further curtailed by Basel IV and a highly publicised royal commission into their lending practices.
But Fintech investment in Australia is rising and rising and still immature and extremely risky and volatile.
Investment into viable platforms IS ON majors Banks and Technology companies’ radars , some have got with the program but many have limited penetration nor even support Fintech trading or crypto currencies at a basic level with a linked bank account or other simple functionality in the case of this Big 4.
There is a long way to go before Alt Currencies are adopted as mainstream. We are not heading there yet and Acumen is only lending directly on a mortgage, with real dollars but secured with property. But we do believe in the modern efficiencies of direct capital models and Fintech as a whole. We just see Fintech as a Segway to more efficiency in placing and pricing “normal commercial mortgages” that a direct mortgage investor or Acumen directly has funded.
Acumen has a hybrid approach that will shift the paradigm and commercialise the realities of what the market will accept without the hot air or volatility of other platforms. It will use blockchain as its DNA for future evolution but utilise standard dollars and existing banking frame work. For now the core product is Direct First Mortgage Investments of a low LVR which have multiple ways to repay the loan or exit strategies. We are offering to family offices or sophisticated investors the ability to underwrite directly with Acumen also co-investing.
We have direct access and solid deal flow in the commercial loan market as a peer to peer style lender / broker / aggregator, taking first Mortgage Security and rejecting deals that are borderline or not of a commercial standard. We get an enquiry currently every 30 mins through our website and reject most at the desk level.
The loans and the borrowers undergo a significant level of due diligence and are backed by mortgage over property and typically a raft of additional securities.The current market factors have led to a strong, unsatisfied borrower demand. An opportunity exists to provide a competitive alternative to existing funding sources in this market. Acumen has every loan opportunity signed up Exclusively. This means that the borrower is fully committed, and our settlement rates are much higher than others in the industry.
If you wish to lend money please click here and tell us a bit more about your lending preferences.
If you're a borrower and wish to take advantage of our exclusive credit matching service which covers the 3 Tiers and and a number of potential options based on the commercial position please click here
Or call our team or Managing Director for a confidential discussion on 02 9238 4218
Disclaimer: Acumen is not a licensed financial services provider and only deals with Sophisticated Investors or lenders who are commercially experienced and will conduct their own due diligence on any and all commercial matters relating to any transaction or proposal and make their own background checks and credit decisions. Acumen is a platform that assists in connecting the borrowers to the lenders and has ongoing relationships with both. No one can rely on any of the statements made in this document to imply that Acumen is running any type of investment scheme on behalf of others nor does it take any money to invest directly. All loans originated through the platform are transacted via lawyers with their respective trust accounts. Acumen is not giving any type of financial advice. 2019.