Case Study: Bridging Finance of €375,000 provided in County Dublin

In March 2023, a property investor approached Onate with an ambitious renovation project in Dun Laoghaire, County Dublin for €575,000. Onate swiftly crafted a tailored financing package, allowing the borrower to not only secure the property but also leverage their skills as a structural engineer to unlock its full potential.

The property in question presented a unique prospect. It was a large former retail unit with a residential house making up part of the property, but it required a comprehensive refurbishment. This property offered significant appreciation potential. The borrower, possessing expertise as a structural engineer, was well-positioned to identify the value-added opportunity that lay within this investment and had completed similar projects previously.

Crucially, the borrower had already gone sale agreed on the property when they reached out to Onate and was working through some title issues with their solicitor.  Once the title issues were clarified, the pressure was on to complete the transaction rapidly. Within 24 hours of the initial request, Onate issued a term sheet for €375,000, representing a reasonable 65% loan-to-value (LTV) ratio. This expedited process allowed the borrower to proceed confidently with their property acquisition to close out the purchase.

One of the unique aspects of this financing arrangement was Onate's willingness to accommodate the borrower's financial situation. Given that the property required a complete overhaul, Onate agreed to retain interest for the first six months of the loan. This approach alleviated the borrower's concern regarding interest servicing until the seventh month when the property would be completed and generating income. The borrower had another residential property, which had been completed and was on the market. This property was successfully sold in August 2023, and the proceeds were strategically earmarked for repaying the Onate loan. Despite the loan's initial term set at 12 months, Onate imposed no penalties for early repayment, showcasing its commitment to flexibility and a client-centric approach.

With Onate's tailored financing solution in place, the borrower seamlessly navigated the acquisition and refurbishment of the property. As the property began generating income in the seventh month, it steadily contributed to the borrower's financial growth and long-term investment strategy.

For property developers and investors seeking financial partners who understand the intricacies of real estate ventures, Onate's track record of delivering results is a testament to its reliability and expertise.

Contact John Ring john@onate.com/0878305276 or Michael Gavin michael@onate.com/0851454200 for more information.