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Do you still have this? i would really love a copy as i cant afford to get to, stay in town & attend a seminar/training weekend!
thanks in advanceNo worries at all Richard.
Can i ask you something? When you first started did you ever have a time where it got so tough you wanted to give up? Reason being, we have put our all into this to start it off and we made a great profit (equity wise), we were sweating on refinancing to pay some off our ppor, use some to go again with another flip & the rest as cashflow for renos and to keep living – and our bank who we lent through, has now said NO!!
I know there are other lenders, but these guys put us through the gauntlet – we started in Nov & everything didn’t settle until end of Jan! We were assured that because we had paid so much in LMI & jumped through so many hoops that our next lending/refinancing experience would be 1) smoother & 2) much quicker. Well they got that part right – nothing quicker than a NO! the only reason they could give is that they wanted to see 12m of history (i have banked with these guys since i was about 3) – This was meant to be our way of making a living, our source of income and now it has been shattered!! We said we would have a fair crack at it, and we new it would be hard, the first one at least, but this has left us heart broken and wondering where to next?! Any words of encouragement or ideas moving forward? Are there lenders out there who will be easier to deal with who dont charge the eart, or should we search for an investing partner to help us get on our feet & started? Times like these i wish i had a fairy godmother or a trusting financial benefactor who says “here we go, that will get you started, pay me back when you make your first million”
i have to stop typing now because i cant see for tears!!!Hi Richard
we are not providing finance, just an option to buy added to the lease; so we dont need an ACL (as advised by our solicitor) the tenants pay rent with an inclusion in that amount that accrues toward their deposit.
Hope that makes sense!: )
Wow!! thanks David!
i will definately be checking out your blog! We have a great solicitor involved so the contract/lease is almost ready to go & we are working with a local lender and the real estate manager to do all the necessary checks on potential tenants to make sure they will be suitable to purchase in 3-5 years. We see it as an opportunity not only for us, but also for those that really want to own their own homes & just need a hand up in doing so ( hence the introduction to the lending manager who can devise a plan for future finance etc & this also re-assures us re credit risks & if there are any defaults a workable plan can be made via the lender & this also gives us our timeframe)
thanks so much for your informative reply. I will let you know how our first goes (we are currently renovating under early occupancy & settlement occurs today!) so I am super excited about it all. Your response has given me extra to consider as far as the management side, I guess its that thing of they have access to TICA (?) checks etc and have the power to remove etc should the tenants turn feral all of a sudden – we are hoping not, its a great family home so were aiming for a working family wanting a go.Lisa
ps – im a rambler and love my words so we are going to get on really well David!Thanks everyone for your input, it’s very much appreciated and has helped a lot.
We are in NSW and are planning to start with one and then go from there and only planning on doing it within the state. I will have a chat with our solicitor, thanks very much for the advice.Do you have potential buyers already?
Yes, we do Ethan and a property ready to exchange very soon, so i really need to get my butt into gear!
Happy to answer your queries. The more I answer, the more I learn (because someone, somewhere, somehow always corrects at least part of my answers ;-)
Hope this helps?
Cheers,Ethan
[/quote]I will no doubt be in contact Ethan thanks for offering your help! And thanks also to Richard & Terry!
Just a question – if you are doing a few of these “simultaneous” settlements a year, do the CG tax liabilities change – because you are doing more it would be classed as a business therefore taxed at a lower rate??
thanks in advance
How does this work on a shorter term? as in, the vendor offers deposit financing to a purchaser who has been pre-approved for finance and negotiates the repayment of the deposit over an agreed term after the settlement takes place.
what requirements would the lender (if any and who) need to satisfy that a deposit is being held/”paid” in order for the purchaser to obtain the finance?
is it simply a binding contractual agreement between the vendor and purchaser additional to the standard sale contract for the repayments after settlement? and does the vendor have the right to oppose a second mortgage or caveat over the property, can they just be happy to have the repayment arrangement in place? is it ever possible for a vendor to waive or gift the deposit to a purchaser? silly questions probably, but i just want to know all the options available and that can be used.
thanks in advanceHi Richard
coudl you provide more information on the above options? or direct me to where i can find it?
thanks in advance.
