Established in 2022 by Fico Finance – a Nelson-based property finance lender with nearly 40 years’ experience in financing business, investment and property development – Select Invest provides approved wholesale investors access to private real estate debt via mortgage-backed loan investments.

New Zealanders understand the power of property to generate wealth. Under the right conditions, property can offer both capital gains and steady cash flow.

Like all investment classes, property has its cons. Traditional direct property investment can be very hands-on – it can be a lot of work managing tenants and navigating the inevitable legislative changes brought in by different governments.

Select Invest offers investors access to property-backed investments, but without the need to be hands on. Their term-loan investments underpinned by first mortgage security, allowing investors to choose from a range of loan profiles and target returns.

First mortgages

First mortgages provide property-related security, while offering targeted fixed returns, without the effort required for self-managed investments.

Key investment features include:

• target returns from 8 per cent, per annum (net of fees, before tax)
• investment terms between 6-18 months
• flexible distribution options (returns paid monthly or at end of term)
• the ability to fund an entire loan or invest alongside other investors.

“Investment duration and return structure are linked to the terms of the underlying loan, which allows investors to select investments that align with their specific investment criteria and cash flow needs,” explains Finn Brooke from Select Invest.

Select Invest works in partnership with Fico Finance, leveraging a network of over 600 financial advisors nationwide, to originate and assess loan applications and loan investment opportunities. If a loan application is approved, a conditional loan offer is issued.

Select Invest works with its legal team and borrowers to ensure all conditions can be met. Borrower applications need to meet credit and security assessments, followed by a due diligence process.

“Select Invest requires stringent conditions to be met, placing a strong emphasis on good-quality property securities, appropriate loan-to-value ratios and borrower creditworthiness. Our thorough due diligence process assesses the borrower’s ability to repay the loan within the agreed term in the manner intended,” says Brooke.

Once conditions are met and the loan settles with funds disbursed, Select Invest manages the loan and monitors adherence to terms and conditions. Select Invest charges a fee for this services.

Approved wholesale investors can select from a range of loan investments underpinned by first registered mortgages against residential, commercial or industrial property. Select Invest does not provide funding for property developments or construction, which can be inherently higher risk.

Investors earn a return via the interest rates borrowers are paying. Investors have a range of loan investment options to choose from, according to risk appetite, location preference and other investment criteria.

“Private real estate debt is a growing asset class and Select Invest’s platform is designed to offer approved wholesale investors transparent and tailored access to the non-bank property finance sector,” Brooke explains.

Select Invest is able to provide potential investors with detailed information about investment options.

“Our experience is that investors often prefer specific regions or property security types and appreciate being able to access curated investment opportunities which have a set duration and clear exit strategy,” Brooke continues.

Prior to investment in a specific loan, approved investors are provided with a fact sheet and information memorandum which contain key loan and investment specifics. If they wish to proceed, the next step is to review the investment agreement and sign an application form.

Once approved by Select Invest, investors fund some or all of a loan by transferring funds to Select Invest’s ANZ trust account for disbursement on loan settlement.

Interest is paid monthly to investors’ nominated bank account (net of fees and before tax). Interest is based on the target return of each specific investment.

Capitalised investments are also available (with interest paid in a lump sum at the end of the term). When the underlying loan is repaid, investors receive return of principal and interest to their nominated bank account (net of fees and before tax).

“Select Invest offers investors the ability to access, evaluate and choose individual investment opportunities tailored to their unique risk appetite. The underlying assessment and ongoing investment management is supported by an organisation with close to 40 years’ lending experience, which provides additional comfort that investments are managed effectively and responsibly,” says Brooke.

Investments are not guaranteed by Select Invest or Fico Finance. All investment involves risk including the risk that security is not enough to fully cover a borrower default.

See selectinvest.co.nz for more information.

Investment opportunities

Approved wholesale investors can select from a range of loan investments underpinned by first registered mortgages against residential, commercial or industrial property. Select Invest does not provide funding for property developments or construction, which can be inherently higher risk.

Investors earn a return via the interest rates borrowers are paying. Investors have a range of loan investment options to choose from, according to risk appetite, location preference and other investment criteria.

“Private real estate debt is a growing asset class and Select Invest’s platform is designed to offer approved wholesale investors transparent and tailored access to the non-bank property finance sector,” Brooke explains.

Select Invest is able to provide potential investors with detailed information about investment options.

“Our experience is that investors often prefer specific regions or property security types and appreciate being able to access curated investment opportunities which have a set duration and clear exit strategy,” Brooke continues.

Prior to investment in a specific loan, approved investors are provided with a fact sheet and information memorandum which contain key loan and investment specifics. If they wish to proceed, the next step is to review the investment agreement and sign an application form.

Once approved by Select Invest, investors fund some or all of a loan by transferring funds to Select Invest’s ANZ trust account for disbursement on loan settlement.

Interest is paid monthly to investors’ nominated bank account (net of fees and before tax). Interest is based on the target return of each specific investment.

Capitalised investments are also available (with interest paid in a lump sum at the end of the term). When the underlying loan is repaid, investors receive return of principal and interest to their nominated bank account (net of fees and before tax).

“Select Invest offers investors the ability to access, evaluate and choose individual investment opportunities tailored to their unique risk appetite. The underlying assessment and ongoing investment management is supported by an organisation with close to 40 years’ lending experience, which provides additional comfort that investments are managed effectively and responsibly,” says Brooke.

Investments are not guaranteed by Select Invest or Fico Finance. All investment involves risk including the risk that security is not enough to fully cover a borrower default.

See selectinvest.co.nz for more information.