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What's the catch with this lender?

Discussion in 'Property Finance' started by Brian84, 14th Sep, 2015.

  1. Brian84

    Brian84 Well-Known Member

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    Location:
    Sydney
    So I just received this email and as an amatuer property investor I was just wondering what the catch is with this company. There has to be a catch somewhere. Is it normal for interest to be calculated daily?

    Here's the start of the email...

    Banks Apply the Brakes on Property Investment & Development Lending



    "The big banks hit the brakes on loans to property investors & developers in July, to pull their annual growth rates below the Australian Prudential Regulation Authorities 10 per cent cap. Figures released by the regulator on Monday show the investor loan books for the big four banks were essentially held flat over the past month"

    Tired of Waiting for Your Lender to Approve Loans

    Had Enough of Working a File for Weeks to be told "NO"

    Australia's non bank alternative lending leader and home of the Capital and Equity Line of Credit™


    Capital and Equity Line of Credit™ allows your clients to access
    equity whatever the structure & investment purpose.


    1st Mortgages - 2nd Mortgages - Caveat Loans


    ·SETTLEMENTS WITHIN 72 HOURS

    ·INTEREST CALCULATED DAILY

    ·DRAW UP AND DOWN AS REQUIRED

    ·NO FIXED TERM

    ·NO EARLY REPAYMENT FEE

    ·NO APPLICATION FEE

    ·NO ESTABLISHMENT FEE

    ·1st MORTGAGE FROM 1% PM

    ·2nd MORTGAGE FROM 2% PM

    ·CAVEAT LOANS FROM 2% PM

    We offer alternative lending solutions from simple business cash flow to property investment & development funding.

    Why waste weeks with the banks to be told "NO"

    At CEG Direct Securities it’s a "YES" WHATEVER THE STRUCTURE!

    At CEG Direct Securities we lend against EQUITY, it doesn't matter whether it's a First Mortgage, Second Mortgage or a Caveat Loan.


    Or Call Jim Ventrice on {deleted} anytime to discuss your requirements


    CEG Direct Securities ABN 97 150 878 587 Australian Credit Licence 432684
     
    Last edited by a moderator: 15th Sep, 2015
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Got the email too - never heard of them
     
  3. Redwood

    Redwood Well-Known Member

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    The catch is that they are spamming a whole pack of inboxes including mine. Great call to action and unfortunately this thread is promoting them. Well done to them...

    Cheers Ivan
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I can understand how they can reach myself and you Ivan - but how do they get to Brian? He's email isn't in his sig.
     
  5. Kinnon Bell

    Kinnon Bell Finance Broker

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    Cairns
    I got spammed too. Must be a group of private funders with too much money and time on their hands.
     
  6. Brian84

    Brian84 Well-Known Member

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    Is it spam, or are they a legit company?

    Am I missing something, is there a catch?
     
  7. Kinnon Bell

    Kinnon Bell Finance Broker

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    Seem legit - I checked them out on ASIC and all seems as it should be.

    The catch (apart from the ridiculously high interest rates) is that I hope you're not fond of your kneecaps if you deviate even slightly from the contract.....

    Usually LVR's are low and a lot of banks don't like agreeing to a second mortgage if it's not another bank too.
     
    Brian84 likes this.
  8. mrdobalina

    mrdobalina Well-Known Member

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    ·1st MORTGAGE FROM 1% PM
    ·2nd MORTGAGE FROM 2% PM

    Is that "per month"???

    Well there's your catch.
     
    Brian84 likes this.
  9. bob shovel

    bob shovel Well-Known Member

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    Shamwow!! That's a few nutri bullets
     
  10. Redwood

    Redwood Well-Known Member

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    Won't bother reading it and not sure how they obtained the email - I get heaps daily.

    However if they are short term funds they can charge whatever they want - I just had a client paying 60% per annum (or 5% per month) on a short term loan (which lasted longer than he thought), these kinds of deals attract certain audiences, thats why Pepper and Beyond the Banks do their business.

    Cheers Ivan
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    Here's something interesting. I use a catchall email address. What that means is only the suffix (after the @) remains constant and the prefix (before the @) can be anything (even a bunch of random letters) and it'll still come to my inbox. I take advantage of this by using different email addresses to sign up for things like subscriptions, websites, forms etc.

    I received this particular email being discussed in this thread. The prefix part is the one I gave Richard Taylor to receive his magazine article pdf.
     
    Last edited: 15th Sep, 2015
    Waldo likes this.
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I get a couple like this every day. It's quite possible they buy email lists from various investment and finance related websites.

    I used some caveat lenders for some complicated deals many years ago. Even if their interest rates were lower, I'll never go there again. If the deal needs short term money like this to get done, then perhaps you shouldn't be doing the deal at this point in time.
     
    Brian84 likes this.
  13. TaylorChang

    TaylorChang Well-Known Member

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    Location:
    Sydney
    I got this email too.

    I don't think there is anything wrong with this lender.

    They are targeting someone who can't fit into the traditional banking system, which is a totally different market.

    I know there are some private lenders charging 3% per month, traditionally, in the commercial lending field. Normal mum and dad investors are not their target market.
     
    Brian84 likes this.
  14. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Adelaide, SA
    Get them all the time - I know someone who works with people in court going through bankruptcy who use them.

    Wouldn't say they're applicable for what most people on this forum want to achieve. ;)
     
    Brian84 likes this.
  15. dabbler

    dabbler Well-Known Member

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    Better hope so....imagine an offset account where you just put 100k and the lender only calculated interest once a month or quarter.....

    The rate they charge per annum will be the key, seems that is the catch.

    PS spam does not mean or equal "scam" spam means, junk mail, unsolicited e-mail. So if I sign up for something from the NAB and I check "do not send me NAB offers or partner offers" it means they should not e-mail me about such things nor sell or share my e-mail address with others who will then pester me about their products.
     
    Brian84 likes this.
  16. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    Brisbane
    CEG Direct have been around for years although they don't lend their own money.

    We have actually provided finance for a number of their Broker deals.

    Nodoc lending on first or second mortgage is fairly standard and has its advantedges.

    For the right kind of deal it is even possible to settle in 24 hours and that speed can certainly help a purchase.

    Cheers

    Richard
     
    Last edited by a moderator: 27th Sep, 2015