Case Study 1

Mr & Mrs Brown were purchasing a Management Rights before their current home had sold. They found the particular Management Rights that suited their lifestyle and decided to go ahead and purchase it. If they had waited until their existing home had sold they would have ran the risk of missing out on the purchase. Their current lender quoted to provide a bridging loan, charging an interest rate of around two per cent higher than the standard variable rates, and conditioned the loan..............

“Property will need to be sold within six months or you will need to list the property for sale at a price indicated by Market Appraisals".

Their existing home was valued at $400,000 and they owned it outright. The Management Rights they wanted to buy was for sale at $700,000. To enable them to purchase their new business immediately without having to use bridging finance, PCS Finance structured a new loan as follows:-

Loan against existing house                  $320,000
Purchase Management Rights              $380,000
Cover legal fees & borrowing costs     $  40,000
Capitalise Interest                                     $  23,000

Total Loan                                                   $763,000

The interest payment allowance of $23,000 fully covered twelve months worth of interest payments on the $320,000 borrowed. This enabled the clients to borrow the extra needed and they subsequently sold their existing home in under four months. They then paid down their loan with the sale proceeds.

Their resultant debt was $413,000 and they retained $20,000 from the sale proceeds to make some minor cosmetic improvements to the new Managers Unit.

Case Study 2

Mr & Mrs Thompson have owned and operated a Management Rights complex for the past five years. They have a good relationship with their bank manager and believe their current lending structure meets their requirements.

They decided to sell their existing complex and take on the challenge of purchasing a Management Rights that was twice the size. They naturally approached their current bank manager for finance. A letter of offer was provided by the bank confirming the new lending structure, interest rates and fees. The offer allowed them to purchase the new complex they were looking for, after the sale of their existing business.

Out of curiosity they decided to contact PCS Finance to see if the bank’s offer was as good as it sounded. After exploring the client’s needs, PCS Finance found the lending structure offered by their current bank was at a competitive interest rate, however it did not provide any flexibility to the client.

After contacting three other lenders, PCS Finance found a finance product that allowed the clients to pay ‘interest only’, as well as giving them access to an offset account.

The clients realised that whilst their current bank had competitive interest rates, the lending facilities were not as flexible and so they decided to change banks and go with the recommendation provided by PCS Finance.

They saved valuable time and effort in not having to repeat their personal financial situation and requirements to several different bank managers. Instead, PCS Finance provided all this information at a time and place suitable to them. They also escaped the hassle of dealing with a bank manager unfamiliar with the management rights industry and its peculiarities.
  

Case Study 3

Geoff, a single fellow and a carpenter by trade dealt almost exclusively with the Management Rights Industry via his Handyman / Maintenance business on the Gold Coast for a number of years. He decided to look into purchasing his own Management Rights Business after many years of having been greeted by the Building Managers in a happy relaxed manner. Geoff reasoned that if they were always happy then it must be a good industry. Another good reason was that he was always paid on time, which indicated a reasonable cash flow.

After some investigating with industry specialists Geoff discovered that a Management Rights business could be operated by one person and that there was a wide variety to choose from and it was only a matter of finding one to suit.

After a short interview with PCS Finance, we were able to give Geoff an indicative price range to look at. He then came back to us with a short list for which we provided indicative finance scenarios.

Geoff found his building in a medium sized permanent complex where he could earn extra income utilizing his trade skills.
 

Case Study 4   

Paul and Sue are a New Zealand couple that were looking for a sea change. Paul was a high school principal and Sue was a Real Estate Agent. They had property in NZ to sell as current exchange rates and interest rates did not favour bridging borrowings until sale. They had been over to Australia on a number of occasions and it was only a matter of time before a suitable building came up. When a suitable building came on the market Paul arranged a flying visit to seal the deal. Because of their prior discussions with PCS Finance, we were able to act quickly when the NZ property sold and the Gold Coast holiday complex came on the market.

Case Study 5 

Janine was a career Public Servant who worked her way to the top of the tree (if you will pardon the pun) in the National Parks dept in North Queensland. Following her family to the Gold Coast it was necessary that Janine found a complex she could operate on her own that required little in the way of hands on maintenance duties. Quietness was also a prerequisite due to her past life in National Parks.

Her agent was able to locate a permanent complex albeit in the middle of Southport, however with the managers unit tucked into the back of the building with a view over looking a beautiful garden and the pool. We at PCS Finance also needed to view the parameters of the building to ensure we could safely put the scenario to the banks as a building a single person could operate successfully.

All the boxes were ticked and Janine will be in her business before Christmas. Janine is in fact the fourth single female we have obtained finance for in recent times.

Case Study 6

John and Debbie came to PCS Finance as a semi retired couple who still enjoyed the stimulus of the business world. They had recently sold the last of their video stores and had researched Management Rights sufficiently to believe it was for them. Their agent had found them a good holiday complex, however they had yet to sell their property, which was to provide their equity.

We at PCS Finance were able to arrange bridging finance with a bank that allowed sufficient time to sell their existing property at a non fire sale price.

John and Debbie moved into their new business and they sold their existing property within six months and reduced their debt to a manageable level.

Case Study 7

Patricia approached PCS Finance wanting to purchase a large holiday complex after hearing about our partnership arrangements. Patricia had managed a variety of buildings including holiday, permanent and student accommodation however had insufficient resources to purchase on her own. She did however have sufficient funds to make a reasonable financial contribution as a managing partner in a large complex.

After searching through our register of investors, PCS Finance was able to provide Patricia with a list of three couples who had current or previous industry experience.

The group was provided with the business figures, a valuation of the business and Patricia’s resume and then at a later date introduced to each other via an informal meeting at the PCS Finance office. After a short period of time the group agreed to purchase the business under a partnership arrangement with Patricia as the managing partner.