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Will do that these days off, its been over 7 years and she has paid off what Westpac sued her for… stupid bank, they also keep sending her bank statements even tho she closed her accounts.
Yeah she has a Default but it has been over 7 years now so it should all be gone. Yeah we go through Yellow Brick Road, so they are yeah financial advisors & mortgage brokers.
Yeah we are both on over 100k each atm and we live in a government house so no rent at all. Should be in a better position than we are but we are working on rectifying that. Yeah might just have to message her.
In regards to the equity we only wanted to use half to help us start our portfolio. But yeah i guess if she has to be involved thats ok with me i am sure the financial advisor knows what they are doing.
Yeah our financial advisor is sorting this out for us. She just could not be on the loan due to bad credit rating caused years ago when her credit card number was used to purchase 10 ipods +15k worth of other stuff. None of it was ordered by her but the bank still sued her. So she had to wait.
Its with her sister, we are getting her name on both so that we can use the equity.
Yeah currently paying down some debt. My partner has a property which has 70k equity in it, but her name is not on the loan atm. We will be rectifying that soon so that we can use half the equity to get ourselves an investment property. I want to use a buyers advocate as i live in a mining town and its expensive to fly to check out places.
Was thinking this leverage loan idea sounds like a good idea, was just after more info on it or well other perspectives.
Yeah true, wish i understood it more. I understand the way of using equity in a house to get the deposit for next property. But he uses the leverage loan to pay for all out goings on the investment property, repayments, stamp duty etc, and all payments go into it. So its like a line of credit and you only pay interest on what you use. And as you get more properties using the equity you just increase the cap of the leverage loan. That's my understanding of it.
I didn't think that's the usual way to go about it, as i thought most people just paid into their loans or their rental payments went onto their loans.
When you use equity is that a loan?
I have not got an investment property yet but i am trying to learn as many things as i can. This concept of his was a little hard to understand.
Has any one read his book ?
Is his type of structure common in property investing?
Hey Jamie,
Heres a link to a scan of the article, will be easier for you to read it than have me explain it.
Thanks to both of you.
1.5mil sounds like a lot but honestly i don't think its that much realistically, just a little scary. Talking to the missus and well she is not interested in the investing side just willing to put money towards it.
Yeah we currently use YBR for our financial plan and what not, and i cannot say a bad thing about the team up here. Jayesh has been extremely helpful and i have not ever paid them out of my pocket. When hes in brisbane he also drives over and sees my dad at nudgee and does not charge a thing. I guess in regards to my goal, i'll write it out what i want and put it forward to them and see what plan they come back with. I would prefer someone that is into property investing then just general investing but i guess we'll see what they come up with.
They were also talking about when getting the loans going P&I in order to build equity that way. But from everything i have read every one seems to be going interest only. Have not hear much for benefits of P&I. So yeah i guess i'll just have to wait and see what they come up with.
Hey Jamie,
Thanks for the advice. So basically to replace my salary i would need passive about 100k. So say i would need 7% return on about 1.5mil. This is where i get confused, books and stuff talk about that but what i cannot seem to get is where is the money? 1.5mil of property is in a sense paper money, so would i be trying to look at a rental yield of 100k a year?
As for my partners sister we are currently in the process of getting my partners name on the deeds and loan. My partner had default due to fraud on her credit card back in the day and was sued by Westpac (not her fault). That was over 7 years ago now but she has been paying 50% of the loan with her sister. So once the loan/deeds and new market appraisal is done will will know how much equity we have.
Our financial advisors YBR recommend we go through them to sort out sourcing/purchasing property, not sure how i feel about that as they aren't really an IP specific business. Will see what their plan for us is. Sadly with living out here we are very limited to making in making a good team due to the lack of services out here and well too many people are in it for themselves out here as well.
