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Hi Mr 007,
clearly plenty of lenders are willing to lend more than purchase price given that 100% finance + expenses is common
Have looked into it further and this kind of structure has been executed in a number of bulk deals previously. I spoke to an independently recommended solicitor in QLD who said that it used to be permitted in QLD but has since been prohibited there. The investment company also did their due diligence and found the same, they think it still may be possible in other states and have executed same previously. I guess it's around what the definition of 'value' is i.e. fire sale with quick turnaround is never going to get the same value as on mkt for average time.
Other than that the deal has fallen through as the vendor has been able to refinance.
In regards to the bank being willing, all I can say is that my banker didn't raise any objections, in fact she said that I could 'include what I liked' above the purchase price given that the loan would be against both the IP and my own residence where I have a healthy equity position. Obviously there would be an implied limit given my combined collateral position but you get the gist. The anecdotes given by the solicitor and and the investment co indicated from experience that it has been done before (solicitor completely independent FYI).
I see the value of asking a chat board, as finding constructive folks who may have the experience to indicate that I should seek a second opinion outside of my standard networks and professional service providers, for specific reasons that they are aware of. Or that have other creative ideas that I can test, as per chat board title. Next time I will clarify whether I would prefer substance free condescension
