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baldy

  • baldy replied to the topic TRUST STRUCTURES FOR MULTIPLE PROPERTIES in the forum Legal & Accounting 18 years ago

    Thanks Terry,

    Hypothetical Scenario:

    Lets just say you (Terry) want to buy a cashflow positive property upto $150k to add to your discretionary trust. Would the potential lender look at:
    1. the serviceability/cashflow of the trust only?
    2. the serviceability/cashflow of you personally?
    3. Or a combination of the two??

    You are really helpful!!!…[Read more]

  • baldy replied to the topic TRUST STRUCTURES FOR MULTIPLE PROPERTIES in the forum Legal & Accounting 18 years ago

    You are a legend Terry!!

    So profits are not quarantined in a trust and can be distributed but
    losses are quarantined??

    Do you mind me asking what sort of trust structure you use for
    your investments and why??

    Thanks

    Baldy

  • baldy replied to the topic TRUST STRUCTURES FOR MULTIPLE PROPERTIES in the forum Legal & Accounting 18 years ago

    Terry,

    Thanks for your help!!
    I thought that it works like this:
    step 1: determine investing strategy
    step 2: setup appropriate trust structure
    step 3: determine what name funds will be borrowed in..i.e. that is
    trust or individual.
    step 4: purchase suitable property.

    So if the properties within your trust are cashflow positive…are
    you able to…[Read more]

  • baldy replied to the topic TRUST STRUCTURES FOR MULTIPLE PROPERTIES in the forum Legal & Accounting 18 years ago

    Thank you for your reponses,

    However I think I am more confused than before!!!

    So If my strategy is to buy multiple positive cashflow properties
    over a 2-3 year period…Should the trust borrow the money or should the individual??

baldy