Mar 27 2025 34 mins
Michael Tresch from Southern Cross Partners pulls back the curtain on how property investors can access capital when banks turn them away. With over two decades of experience in non-bank lending, Michael shares invaluable insights into an often-overlooked corner of New Zealand's property investment ecosystem.
For anyone who's had a bank decline their investment property loan, this conversation reveals the alternative pathway that might just save your next deal. Michael explains how Southern Cross Partners provides short-term funding solutions (3-24 months) for everything from rental property purchases to spec builds, renovations, and commercial developments. Their sweet spot? Being the bridge that helps investors secure a property or complete a project before ultimately refinancing back to mainstream lenders.
What sets them apart is their remarkable speed and flexibility. With loan approvals often completed within 12 hours and their ability to lend up to $5 million without rigid serviceability criteria, they're perfectly positioned to help investors who need to settle quickly. Michael shares multiple case studies – from offshore borrowers investing in New Zealand to developers who hit construction hurdles mid-project – demonstrating how their relationship-focused approach extends beyond just providing capital.
The conversation delves into specific lending parameters (interest rates starting at 8.1%, fees from 1.25%, and LVRs up to 70%), current market trends, and critical advice for property investors considering short-term finance. Michael's candid discussion of projects that have faced challenges offers valuable lessons about realistic pricing expectations and the importance of thorough due diligence.
Whether you're a seasoned property investor or considering your first development project, this episode provides rare insights into non-bank lending that could become your secret weapon in a competitive market. Ready to explore how alternative lending might accelerate your property investment journey?