|Each day, Armada produces outstanding results for our clients, both individuals and businesses. Developing strong relationships allows us to understand the needs of our clients to help them achieve their financial goals. Read on to discover how Armada works its magic in achieving an excellent outcome for a loyal client.
Joe & Mary own a commercial property with finance on normal commercial loan terms.
The value of the commercial property had dropped within the last few years, and the bank was forcing Joe and Mary to inject cash from other assets which they owned to reduce the loan to an acceptable level within 90 days. After then, the bank was threatening to re-possess the property and put it to auction.
The problem was that Joe & Mary’s only other available equity was in superannuation.
Joe & Mary wanted a solution. They approached Armada to investigate their limited options and provide the best solution.
Releasing their superannuation appeared to be their only option. However, Joe and Mary were both in their 40’s and were not eligible to withdraw funds from their industry fund.
The Armada team provided an option of setting up a Self Managed Super Fund (SMSF) and rolling the industry super into their new SMSF. A statement of advice was provided by the Armada team with an explanation of the pros & cons as well as the investment risk of running a SMSF. Joe and Mary saw this as a viable option which perfectly suited their needs.
The restructure required the SMSF to acquire the property from Joe and Mary. The commercial property’s future expectant value would increase over time due to its location, so this was a suitable investment with a long term growth plan for the fund.
The commercial property would be re-financed via the SMSF with Armada assisting with some extra equity which was provided in cash to the SMSF for liquidity and diversified investing.
The commercial loan was now inside their SMSF, but at a lower value than before and was in line with the banks’ lending requirements. The retirement asset portfolio was now intact and in the preferred structure of super.
Armada was able to give Joe and Mary the solution for positive cash flow, reducing their stress and a long term plan for their assets.
Contact us to learn how Armada can help you with your financial goals today.