Short Term Asset Backed Loans
Polaris Investments has recently launched a new line of business that consists of short-term, asset-backed capital lending to acquire properties in semi-distressed situations. The strategy with these assets is to buy them at a discount to market prices and flip them shortly after purchase. The developer who secures the transaction will use the proceeds of the loan to buy the asset and at times perform improvements. He will then seek to dispose of the property as quickly as possible, hopefully realising a profit in the process. The loans agreed by Polaris Investments on behalf of investors will be fully registered mortgages and will have first lien on the real properties. The terms of these loans will be negotiated on a case-by-case basis but average tenor should range from 6 months up to 1.5 year and interest rate should be set in the high single to low double digit return. Polaris Investments, together with his exclusive partners on-the-ground, has capability of sourcing such deals and is looking for on-going capital commitment from investors for opportunistic deployment.