Inside the first mortgage opportunity
Are you a wholesale investor looking for structured property credit opportunities? CrowdProperty Stretch Senior (Class B) is a subordinated first mortgage credit position designed exclusively for wholesale investors, targeting 14% p.a*.
As banks continue to operate within tighter regulatory and credit constraints, quality residential projects can require funding beyond traditional institutional lending limits. Stretch Senior (Class B) is designed to occupy that gap. Sitting ahead of developer equity but behind the institutional Class A tranche, within the same registered first mortgage structure.
The opportunity is built on three fundamentals: expertly selected loans, a clearly defined place in the capital stack, and a security package including real residential assets and borrower guarantees. Investors enter once key project and planning milestones are already in place.
Read on to discover how CrowdProperty Stretch Senior (Class B) can support your investment objectives.
Why invest in CrowdProperty Stretch Senior (Class B)?
- Australia needs more homes in the places people actually want to live and work. That means simpler infill housing — townhouses, terraces, duplexes and small multi-unit projects — in established suburbs. This is the missing middle Australia needs to build.
- The major banks are retreating from funding small-to-medium property developers, creating a gap in the market that non-bank lenders are well-placed to fill.
- For more than half of SME property developers, access to finance remains one of the biggest barriers to delivering new homes (CrowdProperty SME Developer Survey).
- Class B capital earns a return premium for a clearly defined subordinated position behind the institutional Class A tranche and ahead of developer equity.
By investing in Stretch Senior (Class B), you’re backing the delivery of housing through a structured first mortgage credit position — not equity-style development risk.
Features and benefits of CrowdProperty Stretch Senior (Class B)
We consider the key benefits of this investment to be:
- Targeting 14% p.a.* Class B earns a return premium for its defined position behind the institutional Class A tranche within the same registered first mortgage structure, but ahead of developer equity.
- First mortgage security. Every opportunity is secured by a registered first mortgage over Australian residential property. The security package also includes a General Security Agreement and personal guarantees from directors.
- Institutional co-investor. An institutional Class A lender underwrites the senior tranche and conducts independent due diligence before committing capital — a double-layer review process for every opportunity.
- Invest once milestones are in place. Opportunities are usually offered after development approval, builder appointment, and with construction already underway — reducing early-stage project risk.
- Professionally managed. All opportunities are sourced, assessed, and managed by CrowdProperty, experienced experts in SME residential development and construction finance. An independent trustee holds the registered first mortgage offering a further layer of investor protection.
- Rigorous due diligence. Each project undergoes CrowdProperty’s proprietary 57-step credit assessment, covering the borrower, valuation, feasibility, build status, cost to complete, security position, and repayment pathway.
- Conservative LVRs. Maximum loan-to-value ratios are set conservatively to protect the security position.
- Aligned with lower-complexity infill. CrowdProperty focuses on low to medium-rise residential infill projects — the segment of the market with genuine housing demand and a more manageable risk profile than high-rise or speculative development.
How to get started
- Request the Information Memorandum and confirm your wholesale investor status.
- Complete the registration process via the CrowdProperty platform.
- Assign funds to receive an allocation
