Hi. I recently attend the Master Class in Melbourne at which Steve spoke about setting up Trusts, and using this to acquire multiple loans to expand your wealth. I met with my accountant yesterday and spoke about this and she advised that banks will not give me another loan – in NSW anyway. I’m interested to know if anyone other thant Steve has had success in acquiring multiple loans, and how.
Just as background I would set up a company trustee, but as an individual I’d be the company director therefor guarantor to the loan, as well as the beneficiary of the trust. The fact that I would be the guarantor to the first loan would be on my credit record. For this reason my accountant advised that a bank, or anyone else, would not give another trust a loan that I had to be guarantor for, if I was already the sole guarantor for another trust already.
I would really appreciate any feedback on this subject.
Anne
Cata and Coasty Mike should be able to advise you on the trusts issues..what type were you going to set-up?
As far as getting loan advice of your accountant [biggrin] I’d suggest speaking to a Mortgage Broker instead (there are some great one’s on this forum and if you have a look at their posts you’ll get a good indication of how helpful they are)
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorProviding your income can service multiple loans there is no problem, cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Anne
Steven as usual is bang on.
Sounds like it might be time to change Accountants.We process many loans in the entity structure you have described and it is standard practise in the finance industry to lend with an individual director as guarantor.
For all of our wraps we use a Pty Ltd Company ATF a Trust and there has been a lot of these. Never had a bank complain yet.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Anne
I understand what you are trying to say, and think the others have missed it.
The idea is to guarrantee the loan, then setup a new structure when your borrowing capacity maxes out, not telling the new bank that the same person has guarranteed loans for the previous structure.
Will this work?
Maybe. If the new lender does not ask about guarrantees, then you are not lying. However, you CRAA would clearly show the previous applications as inquiries and therefore they would more than likely ask..
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Anne
Terry is right.
Most lenders will take your guarantee into account for all trustee comapnies you are a director of and the subsequent loans and repayments. They will also take the rental income into consideration which goes a long way towrd helping service the debt.
They will know about the other trusts because creidt enquiries like Baycorp (CRAA) alos cross reference comapny directorships with individual applicants.
If Terry is wrong in his interpretation, then I agree with everyone else, finad another accountant. Provided you can show you have enough equity and the capacity to pay back the loans, lenders do not care how many guarantees or comapnies you set up and borrow through. They treat you all as one individual for the purpose of lending and then do all the legal work (guarntees and indipendent advise etc) to ensure they are protected as though you were all one.
Hope this helps.
Originally posted by Terryw:Anne
I understand what you are trying to say, and think the others have missed it.
The idea is to guarrantee the loan, then setup a new structure when your borrowing capacity maxes out, not telling the new bank that the same person has guarranteed loans for the previous structure.
Will this work?
Maybe. If the new lender does not ask about guarrantees, then you are not lying. However, you CRAA would clearly show the previous applications as inquiries and therefore they would more than likely ask..
Terryw
Discover Home Loans
North Sydney
[email protected]Yes Home Loans Pty Ltd
Is your mortgage advisor accredited with the “Non Bank Lender of the Year?”
(Money Magazine 2005).hi alatter
all of the above is correct but this is for bank lending private lending is different in that they do look at the directors of the company but do not in all cases cross migrate as long as you inform of the directorships of the companies so if they look at craa they see these loans they are not as big an issue.
The loan can be a stand alone loan I think it maybe time to talk to a broker and maybe change to a more switch on accountant ( you need to be a little creative with your lending options)here to help
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