Hi,
We are trying to find out if it is possible to organise an agreement with a bank that will basically allow us to obtain finance for further property purchases without having to go through the painful and time consuming process we currently endure of applying for individual loans each time. So that they look at our property investments as an entirety and say OK we see your assets and liabilities we are able to let you borrow “X” amount with no application fees etc etc etc. There must be many investors holding multiple properties, so what do they all do?
We have asked a mortgage broker to approach a couple of banks on our behalf but we don’t think she really understands what we are trying to achieve.
I have looked at a couple of “Portfolio Loans” now offered by a couple of the larger banks which enable investors to hold 10 to 12 properties under the one umbrella. Does anyone have any experience of these type of products and knowledge of the pros and cons.
We are based in WA
Thanks very much for any information.jebro
Hi Jebro
Regretfully you wont find anything like that on a residential basis as any lender will want to assess the situation everytime there is an increase in the credit limit or a change in the securities held.
Certainly on a Commercial situation with a blanket loan then that is a different story.
With the portfolio loan products out there and even with portability of loans the lender will want to protect himself against fluctuating circumstances.
The other thing your MB will have all of his commissions clawed back everytime you sell a property usally within the first 12 months so he will not be too keen to be working for nothing for you.
There are a couple of halfway house products which probably get you almost to where you want which i am sure he will investigate.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Thanks Richard,
Of course that wasn’t the answer I was hoping to hear! However I do understand what you are saying. We did previously successfully get a commercial deal as you say under a blanket loan and somewhat naievely thought we would be able to do the same for residentials. Pity! Yes, I can understand why a MB wouldn’t be too keen to do a lot of work for nothing as we would be looking at buying and selling fairly regularly, depending on our properties performances.
We will keep plugging on in our quest for what will come closest to our ideal.
If the MB doesn’t come up with anything else are you able to explain what a half way product might entail?jebro
Jebro
Sure feel free to shoot me an email if your MB exhausts his sources.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
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