Forum Replies Created
Hi UraneHan,
I am a little bit confused after reading your post – how did everybody else go?
What did you mean “interested in wrapping investors”?
Should we be thinking of buying the units and wrapping them to the investors – or is it a JV type arrangement where the investor buys the unit and we somehow become a money partner – or are we buying the unit from the investor to get them out of hot water, as they may not be able to get finance to settle on their purchase.
I am interested but I will need more info as I am guessing others are just as confused as me about your idea. Did that make sense?[smiling]
People in Vic may want to check with the Business Licencing Authority (part of Consumer Affairs).
It is arguable as to whether or not it is required – but I figure play it safe [biggrin]
Hi Simon!
I don’t know his full situation but I do think he could get some extra money from a relative or something.
Do any of you guys know much about using an interest bearing deposit IBD as security?
Any other suggestions are appreciated. I can’t see Vendor Finance as an option because they want to build a house on some land they have found.
Cheers,
Greg.Hi Noam,
Could you tell us more about your apartment… When is it due for completion? How many bedrooms does it have? What level is it on? and if it is not too sensitive – How much was the contract for?
I am guessing that Docklands is a great long term investment, but you will need to carry it in the meantime. That seems to be the opinion of all the commentators.
You may find that you have trouble finding a lender who will lend in this area… maybe they might take another property as additional security or something like that (if you have enough equity that is!)
Mortgage Brokers -> Any comments guys?
Hi Rakky!
Noticed you were from Vic so I’ll suggest you go to http://www.bla.vic.gov.au and click on “credit provider”
Some would argue whether you need to register – but like Brent says play it safe and you can’t go wrong.
Cheers,
Greg.Pisces, I had a search on the internet and am not familiar with non recourse mortgages. Could you give a brief overveiw of what these are and the associated benefits/disadvantages?
And, I can’t understand how the vendor would get there house back and I would lose my $15k deposit. Sorry if this turns out to be an obvious answer.
At what point would this happen (no contracts have been signed yet). I was not going to buy this as a vendor terms contract but instead a standard contract, with a seperate mortgage given to the vendor with the right to lodge a caveat on title.
I think the vendors legal representatives concerns stem more from a lack of understanding rather than a concern over security. He is a conveyancer rather than a solicitor and very much a middle of the road type of guy.
You have to wonder if using a conveyancer is really cheaper than a solicitor. Did they save $200 or will it cost them $10,000 or more?
Another thing I have found is that dealing with the more senior RE agents in the office is the way to go. They are the ones meeting the clients and getting the listings – so they know the clients circumstances and if the client is likely to be interested in something like this.
I am not saying they will disclose the vendors motivation for selling. But they may well say “No these people need the cash. However, I have another house where the people…..”
Dealing with the agents lower in the office hierachy seems to add another person to the mix and can waste your time, create misunderstanding and the proverbial chinese whisper effect.
What a great topic!
I am currently negotiating one of these deals. The owners are divorcing/seperating and want out fast. At this stage they are firm on the price of $195. So I offered $15k at exchange. $135k at settlement and $45k in three years with interest only payments each month at 8%. I intend to get a loan for 80% LVR/$156K. This covers my 20% deposit and closing costs.
The vendors are keen the problem is with their conveyancer. My solicitor has spoken with him as has the principal of the RE agency. It is sad that he is delaying he sale for his clients, because of his lack of knowledge. My next offer was a normal sale at $188k.
So make sure you ask – you never know who will be interested. Actually the principal rang me about this deal after a similar proposal was knocked back by a different vendor just a few days earlier. Different people, different circumstances.
