True Mel

What we’re talking about then is a JV scenario as apposed to Mez finance.

The difference lies in the security provided for the funds invested.

The problem I have is that they are advertising as Mez funds with great returns etc. And my concern there is that a novice investor may easily get burned by not being able to ascertain the security provided.

The company in question here in Brisbane offers these great returns and as security provides director’s personal guarentees. On looking more into it we discovered that they had offered the same guarentees on about 5 other projects.

And do you think the director’s will have much in their names?

I think there are going to be a few people burned in the coming months.

Brendon

Clint

Have already gone through this with you, 75% is max, unless I’m missing something here and another broker can get more than 75% for that postcode and an overseas application on your servicibility?

Simon is very experienced here, use him.

Brendon

I agree

Just because you have an IO loan doesn’t mean you cannot pay off the principle, you are only obliged to pay the interest component each month.

Hence more flexiblity if you need a few months of reduced payments. This goes for PPOR loans too, with P&I you are reducing the available limit you can redraw back up to so why not keep your available limit as high as possible (and keep increasing with new vals) rather than go back to the bank to ask for a line increase.

Brendon

HI Positive Cashflow

Derek’s advice is spot on, as you should be having a chat to the valuer yourself who will give you a good idea of whether you’re paying too much or not.

Don’t trust your bank to let you know if you’re paying too much for the property, as they will allow you to do it if you have good servicibility.

In other words, take control yourself of the valuation process, it will be a great learning experience.

Good Luck!

Brendon

I’m not sure what the forum was like a few months ago as I’ve only been on here for that time, but you only have to look at the recent posts in the finance forum to see it’s getting pretty heated at the moment.

This is a great site for information shared by some pretty clued up people and I can say my education has accellarated a lot quicker due to finding it.

Hopefully those sophisticated, experienced investors who regularly share their knowledge on here are not pushed out by all the aggression around at the moment.

Brendon

Hi Lister

Just my 2cents but I agree with Rob that you will achieve a better price when the property is completed simply because it is the owner occupiers who see the finished product and get emotional about the property, which is difficult to do off-the-plan as not everyone has that type of imagination.

If you don’t have experience selling property I would also suggest using an agent. Be tough and interview a few to find the right one, and don’t scrimp on the marketing costs, as the more people that see the home advertised, the better chance you have.

Also try adding a few little extras in the property to make it stand out from everything else in the street. This may not necessarily cost a lot if you’re creative. Go for good street appeal especially as first impressions count.

Hope this helps, others may add further info, but just my limited experience.

Good Luck!

Brendon

Correct

There are a few non-conforming lenders and mortage origination companies (such as ourselves) who offer 100% finance now.

As these loans will require LMI, it will be the mortgage insurers who look very closely at each application, and impose pretty strict conditions.

Brendon

That’s hilarious Westan! Do you think Steve Mcknight should market the site as a form of birth control then?

Brendon

1. Mezzanine funding
2. Short term lending
3. Robbing a bank (not for everyone)

Brendon