Forum Replies Created
Thanks for the recommendation Richard.
Regards
AlistairI'm glad you posted a query about this and didn't sign up. What that company is offering is absolutely awful. Have a read of the finance board on this site and get in touch with one of the brokers who post regualrly for some decent advice.
Regards
AlistairHi HH,
I would like to think that I tick all of those boxes. However, I have an ethical problem with paying referal fees, if you are recommending someone it should not be because you are being paid for it. Having said that I always try to look after the people I deal with and I am very active in the property industry on a number of levels so, depending on what it is you do, there may be some direct benefits in dealing with me. You can reach me by pm or email through this site if you would like to have a chat.
Regards
AlistairSorry to rain on your parade but 70% of gross realisation on a 5 story apartment block with no presales is not feasible unless you have significant net worth and experience ot you are offering supporting security.
Regards
AlistairThere are a lot of different comercial lenders and most have specific niches that they are suitable for, if your project has good margins and presales is all your concerned about then there are lenders that can assist you. Having said this, i would suggest that having some presales for an apartment development is not a bad idea, it lowers your risk obviously, but it is also good for marketing to have have some of the apartments taken prior to it being finished.
Regards
AlistairHave a look at http://www.gal.com.au Chris Lang who runs the business has published a well known book on commercial property, there is also some free info on the site.
Regards
AlistairHi Chris,
Send me a PM of email. If you are sure you want to become a broker I can assist you getting accredited. The difficulty and cost of becoming accredited is overstated, the real issue for most brokers is generating work. I warn you though, very few independent brokers are in the least bit successful, the industry is flooded and it is very difficult to compete for regular home loans with branded businesses and direct lenders. Having said this, if you are capable of generating leads, it can also be very lucrative.
My advice is to get yourself accredited, don't bother to work for anyone else, just live or die (figeratively of course) by your own knowledge and ability. You will know pretty quickly if you can make a go of this industry.
Regards
AlistairBelieve me, Developers and their sales people also tend to overprice off-the-plan properties as well.
Remember, never buy off-the-plan.
This is a bit too much of a gernalisation, people do make money from off-the-plan sales on occasions.
I've optioned property before, it's very easy. You approch a land owner and offer them money for an option to purchase their land at some future time for a set price, you then rely on growth or more likely take steps towards rezoning or obtaining a DA to develop/subdivide, which (hopefully) lifts the value above the option strike price. You always need a lawyer to draw up the option contract, so you don't need to know how to write a contract. The trick is finding an owner who will agree, but there are plent who will.
That will be $4K thanks.
Regards
AlistairApparently Aussie have pretty good training, they can also supply leads which would be of assistance to you starting out. On the downside they pay less than if you use most other aggregators and if you leave you lose your trail. What you have to work out is whether you are going to be good at bringing in clients or if you will need assistance with this, if you are a good salesperson, then Aussie is definately not the way to go. However, you should know that only a fairly small percentage of independent brokers do much volume, a large percentage are part time.
Regards
AlistairYou can definately get 90% on 3 units. Get yourself a good broker.
Regards
AlistairAnyone contemplating a development should budget for 12 months for planning approval. If you do this you are able to take the decision out of councils hands, should they be unreasonable. You will find it very difficult to find a council that is truelly developer friendly, and even if you manage to get an application through smoothly (which is possible in any municipality) there is always the risk that a neighbour will take you to VCAT. Consequently I really can't see why the councils attitude should even be a consideration, just pick good projects.
Regards
AlistairHi All,
How loans within different structures are treated is heavily dependent on the type of loans and the section of the bank you are using. If you are just buying low yielding residential properties then it is clear that each of the loans should be treated, for servicing purposes, the same as if they are all in your personal name as there is a relience on your personal income to service them. The same cannot be said in cases where companies/trusts are used to hold commercial properties or developments, which are usually self funding. Debt in such situations can often be ignored by lenders, for servicing purposes, as it does not impact on income outside. As Steve was investing in high cashflow properties and vendor finance deals, I would think that his activities would have been viewed, by his bank, as being commercial in nature and would have been treated as such.
Regards
AlistairHi Blacknblue,
Sorry for taking so long to get back to you. You should have no trouble lending more money as you have heaps of equity, your problem is with the way you are structuring your loans. Stop using LOC's for everything, use construction loans for building and keep everything seperate. It's also a good idea to use a seperate structure for commercial properties (best is a structure for each), development and residential.
Regards
AlistairHi Blacknblue,
Without knowing the nature and value of the commercial properties and developments it is difficult to give difinitive advice. However, generally you should keep each commercial property and development within a seperate legal entity. If you have residential property crossed in, then you should only use this as a temporary solution. This will assist you with servicing using the same lender and will also give you maximum flexibility in terms of usiong altenative lenders where appropriate. I'm happy to go into more detail, but its a fairly complex topic, so please feel free to post questions and i'll do my best to answer them.
Regards
AlistairThis product isn't new, First Permanent have been doing 106% loans for quite a while. It's quite a good product, but in most cases you can get the same amount of money other ways and cheaper.
Hi Julian,
I can put you in contact with a developer in Curra if you are interested. His development is just about to have titles released so your timing is pretty good. He is also a long time member of this forum if this means anything.
Regards
AlistairYou've done the course, please tell us what it entitles you to do.
Hi Carlin,
No lender is going to give you their servicing calculator, so how do you propose working out which lender/combination of lenders will be best for you?
"but as you say, Richard, it's hard to find one that's investor orientated, doesn't have a problem with Trusts (not that we have a Trust – explored that one and didn't seem worth the cost/effort), with a service level that's acceptable and with specials that last beyond today.
I would think that Richard has proven through hundreds of posts that he ticks all of these boxes, why don't you give him a call. You are simply not going to get what you want without using someone such as him.
Regards
AlistairMy understanding is that this qualification does not currently entitle you to do anything. A Real Estate Agents license allows you to give advice on property investment and receive comissions on sales soi I can't see the point of this course. Please correct me if I'm wrong.
Regards
Alistair