FAQ
Holding a registered mortgage against ‘real property’ allows you to invest in the loan that the mortgage secures with the knowledge that if the borrower defaults on their obligation to pay there is a legal right to sell the property to recover the debt.
Investment returns
Investments in private mortgages can consistently earn between 6.00% and 15.00%pa depending on the degree of risk you wish to take. Earnings can be invested in Zank Income Fund to provide you with a lower risk return.
Security
Mortgage investments are secured by tangible assets that you can ‘touch and feel’. Typically the loans which are secured by a mortgage are based on a percentage of the appraised value of the real estate security also referred to as the Loan to Value Ratio (LVR). By combining a lower LVR with short loan terms (the length of time the loan is outstanding) the likelihood of the value of the real estate security dropping below the value of the mortgage is, in a normal market, considered minimal.
Low Volatility
Mortgage investments can have a stated interest rate for the length of the loan that typically is constant. You know what you will earn on your investment when you make it unless it is a variable rate investment.
Diversification
Investment in a range of ‘Select Mortgages’ can reduce the volatility associated with individual market segments, and accordingly help you protect your assets.
Loans that are secured by a first and second mortgage can include the following purposes:
- Purchase or refinance of existing property
- Construction & development
Security offered for the loan can include residential, commercial and industrial property as well as vacant land and rural property.
Periodic Income
Once the borrower receives loan funds, they are required to make regular periodic payments of interest. This payment of interest provides you, as the Investor, with regular periodic cash flow.
Professional Management
Zank & Company manages all the details of the mortgage loan. We co-ordinate all the legal documentation, ongoing mortgage administration and mortgage renewal negotiations. We collect your interest due and pass it on to you, the investor. Fees for this service are paid by the borrower via a management fee which is paid with the borrower’s interest.
Through Zank Income Fund, Zank & Company sources and assesses loans on behalf of our investors. We take care of all the work for you by dealing directly with the borrowers.
LVR stands for “Loan to Valuation Ratio”. It is the loan amount compared to the valuation amount of the property offered as security for the loan. The higher the LVR the less equity the borrower has in the property used as security for the loan. It is generally safe to say that the higher the LVR, the greater the risk, all other things being equal.
We employ trained professionals who have obtained the experience required in order to operate the Mortgage Fund. This ensures we provide a level of care, a knowledge of mortgage products and other asset classes and a standard of service to meet your investment needs. Our wealth of lending experience allows us to quickly review and qualify property for lending.
Our role is to find and structure deals that are suitable for mortgage financing. Once the loan is pre-approved by us, we make the investment opportunity available to the Fund. For this service we are paid a fee by the borrower, not by the investor.
Zank & Company is committed to product excellence, investment security and service. All investments are vetted through a credit analysis process prior to them being presented to you, the investor. Seeking to preserve your capital is first and foremost in every investment opportunity we review. Our Income Fund’s commitment to excellence includes the following highlights:
1. High income earning yield (much higher than bank deposits)
2. Flexible terms (ranging from 3 months to 12 months)
3. There is no entry fee
4. Available for SMSF customers
5. Easy access to account information on Zank App
6. Quarterly funds report
7. Reliable regulatory authority
8. Professional asset management team
Nothing. All upfront costs are paid by the borrower at the application stage of the mortgage and there are NO investment ENTRY FEES. You as the investor do not pay any establishment fees in relation to your investment. All establishment and loan management fees are paid by the borrower. The forecast rate of return is the net return to you after general cost such as trustee fee. The “Fees & Charges” section of the Product Disclosure Statement (PDS) details fees that may be payable by you as investor.
Persons who are not Australian Residents are allowed to invest in registered managed investment schemes such as the Zank Income Fund and will, in most cases, only pay 10% of the investment returns earned each distribution as a withholding tax.
For our Zank Income Fund, the minimum investment amount is $100,000; the maximum amount is unlimited. ZSelect Fund are limited to the amount of funds required for investment in each loan. Our Hotel fund has a minimum investment amount of $500,000. Zank & Company however, reserves the right to reject an investment amount if it is not in the best interest of all investors.
Zank & Company has appointed Sargon CT as the Custodian of the Income Fund and it is listed on the title as the mortgagee.
Yes, register via our website and App to access our online investor platform.
Our website and App give you 24/7 user friendly, safe and secure access to your investment accounts with the ability to review your balances.
To assist with the registration process you will need the following on hand:
- Your Investment Entity Name
- Email address
You will receive emails to keep you up to date with the progress of your registration.