Management Rights

NFC are your Management Rights specialists. Whether you are considering an existing going concern or "off the plan" management rights we can assist.

Only experienced finance professionals understand what is required. Some banks/lenders specialise in management rights but the terms and conditions vary greatly. Approved applicants may borrow for the residential property as well as secure funding against the "management rights" or the "business component" as well. The management rights are considered like a business in some aspects and they do have a tangible value based upon the earning potential of the management rights. This is done in a similar fashion to a rent roll with a real estate business.

As with purchasing any business there is due dilligence that needs to be undertaken. This normally involves legal and accounting. Cash flow projections are assessed on "off the plan" management rights and prior financials for a "going concern". Body Corporate income/agreements/contracts/claw back and claw forward agreements also need to be legally assessed. This is to ensure there is some level of protection for the purchaser and the bank funding the purchase.

Banks will also consider your previous experience in business, management rights, real estate sales and property management experience. Cash reserves and asset backing are also highly regarded.

Management Rights - NFC National Finance Corporation