Investments for Wholesale Investors

RPM Capital offers attractive real estate investments to private wholesale investors and high net worth individuals seeking reliable long-term wealth management.

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We provide secured first position mortgages with 70% max funding, delivering up to 11% returns. Loan opportunities come with executive summaries for informed decision-making.

Choose RPM Capital for unmatched investment expertise, strong relationships, transparent reporting, and agile strategies adapted to changing markets. Benefit from our wide network and sharp negotiation skills, gaining access to exclusive deals.

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Experience seamless navigation of investments, achieving rewards aligned with your vision and goals. We are 100% New Zealand owned.

Investment Security:

• Funds invested are lent by RPM Capital to commercial borrowers for short-term property projects. These loans are secured by first-ranking mortgages on the property, providing investors with security over RPM Capital's security.

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Loan-to-Value Ratio (LVR):

• RPM Capital lends up to a maximum of 70% LVR of the property's value, aiming to protect investor capital during market downturns or unforeseen events.

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Default Scenario

• If a borrower defaults, RPM Capital initiates recovery actions, which may include legal proceedings or managing a mortgagee sale to recover the principal and interest. However, returns are not guaranteed, and there's a risk of financial loss.

 

Risk of Loss

• Although there has been no loss of capital or interest historically, investment inherently carries risk. Past performance isn't indicative of future results. Risks include borrower default or inability to exit investments at full value.

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Additional Security

   •    Beyond the first mortgage, RPM Capital often secures personal guarantees from individuals associated with the borrower, offering an extra recovery option if the property value falls short.

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Property Security

• Property Types: Residential or commercial property in New Zealand, excluding leasehold.

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Regulatory and Company Information

• Regulation: RPM Capital is a registered Financial Service Provider but not licensed by the Financial Markets Authority for the services provided.

• Valuation: Property valuations are conducted to ensure the 70% LVR is not exceeded.

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Tax and Investment Performance

• RWT: Residential Withholding Tax is deducted from interest income based on your tax rate.

• Directors' Investment: RPM Capital's directors and shareholders are personally invested.

• Track Record: No loss of investor capital to date, but this doesn't predict future outcomes.

Investment Eligibility and Requirements

• Minimum Investment: $100,000 for select wholesale investors.

• Wholesale Investor: Typically, large or experienced investors meeting legal criteria.

• Reinvestment: Interest distributions can be reinvested if desired.

• Early Exit: Investments are generally illiquid, but RPM can facilitate an early exit by finding a replacement investor, though this might incur costs.

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Investment Returns and Terms

• Investment Term: Loans are short-term, up to 1 year.

• Early Repayment: Funds plus accrued interest are returned if the borrower repays early.

• Interest Payments: Borrowers pay interest only each month, with principal returned at end of the term.

• Credit Analysis: Loans are evaluated based on purpose, exit strategy, security asset value, and borrower's repayment capacity.

• Loan Term Extension: Fixed terms, but extensions can be requested.

• Interest Rate Changes: Loans are at a fixed rate, protecting against rate increases within the term.

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Investment Process and Control

• Property Selection: Investors can choose which property their funds are lent against.

• RPM Capital's Revenue: Comes from fees charged to borrowers, not investors.

• Investment Nature: Not direct real estate investment but loans secured by property mortgages.

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Borrower and Loan Information

• Borrower Types: Commercial entities or developers, not consumer lending.

• Loan Sourcing: From mortgage brokers, financial advisors, and direct networks.

• Reasons for Non-Bank Financing: Could be due to complex loan needs or not fitting bank criteria.

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Conclusion on Security of Funds

While RPM Capital has measures in place to secure investments, all investments carry inherent risks. The security provided by first-ranking mortgages, conservative LVR, and additional personal guarantees aim to mitigate these risks, but investors should be aware that no investment is entirely risk-free.

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