Forum Replies Created
Hi Luke,
Thank you for your feedback.
That certainly is an option and I hope people here don’t mind sharing more ideas based on this scenario. At least as alternatives I have not listed on my points above.
Something I may have missed. Perhaps people who have had a similar situation to mine and what they’ve done if they don’t mind sharing that with me.
Regards,
Hi
Thank you for that reply!
The aim is to find the best way to reduce debt and/or increase buying power to buy more IPs without going backwards.
I envisage that in the best case scenario I’d turn the PPoR into an asset or get monies from IPs paid back into the PPoR’s debt as it’s currently a high liability.
What I’m troubleshooting is…
1. Sell the existing IP and put the proceeds in the PPoR then refinance the PPoR as a line of credit and use the Equity
to invest in multiple IPs2. Refinance the existing IP as a line of credit and use the money there to invest which would increase the debt
on the existing IP.3. Sell the PPoR and pay the money into the existing IP debt, then refinance the existing IP to use the money
for investment. (this would involve looking for a place to rent for me as the PPoR would no longer exist)4. Rent out the PPoR and refinance this property (now as an IP) or both to use the money
on both properties’ equity for investment. (this would also involve me looking for a place to rent)I have spoken to a hand full of brokers which seem to be more product oriented and basically recommend ideas based on what they have to offer. I’m not looking for a loan at this stage.
As I see it, they are not financial advisers so it’s about the same as asking for ideas here. However, I think I can draw a better picture of a solution by getting ideas from more seasoned or experienced people on these forums as brokers are not necessarily investors.
So please, don’t be afraid to say what comes to mind. I’m not really looking for advice, just ideas I may not have thought of… I’m always responsible for the end decision and won’t hold it against anyone.
please feel free to comment.
Regards
Hi all.
I'll submit the notice in writting for sure but do I have to give the REA 30 day notice in the NON-exclusive period?
although what can the REA possibly do?… put out a contract on me? or turn up at the open house incognito and pass ugly comments to possible buyers?
Thanks Xenia. v8ghia stay away from the alcohol… give it all to me, I may need it shortly !
Hi noysee!
I’m a begginer investor from Sydney and I’m interested in the USA trip you mention in your post though with limited time to hunt and gather information at the moment, can I ask you to share more details about this trip? or just a link would be fine.
Hi bardon!
As you can imagine I’m very interested in the USA market at the moment and have very litle information. I was hoping you could share some of that information you sent noysee, with me.
I really appreciate as much info as I can get and am hoping to be contributing back to these forums very soon as I grow with experience and success.
Please feel free to contact me on my email
[email protected]cheers!
CarlCarl
Excellent!
Thank you for your advice. Needles to say there are those willing to do their best to help when asked. I will follow through on each and all of those points.
I’m showing as much interest as I honestly have. I am finding that most RE salemen, in this new areas I’ve picked, seem to be under a lot of presure and no much luck. Their willingness to coperate (unless you can show them your finance contract or cash balance in your bank account covering all costs) is next to zero.
But I know I can get around that. My impression is that most of this RES feel empowered to a complete control of the interaction between buyer and vendor. My question is, if I can cut the clock and dagger game with them and go stright to the vendor it would save an enormeous time!
Either way, thank you again and any more ideas or enlightment you can place here I will be for ever grateful guys !
And one day return the favor.
Cheers
CarlCarl
I think it’s great though it’s reinventing the wheel!
those deals are indeed everywhere and you can buy them if you have the cashflow or can get public funds(which will come very expensive too) as banks lend you up to 70% but (and unless you’re a cashed up investor) usually lend you up to 50% LVR.
This information is first hand attempts and second hand from experienced people.
please let me know what your new angle is on this. I don’t mind being wrong as I seek only “better and best” approach, process and results.
Cheers!
Cheers
Latinoz
Thank you Terry,
I’ve been looking through Anthony Cordato’s website and I’m going to contact the firm.
As a form of reference, can you tell me your views and experience with this firm?
I appreciate your comments.
Carl
Latinoz
Thank you Skippygirl, that was very helpful.
Regarding the equity on the place: I mentioned in my initial post a debt against the property of $250K so the equity is around $150K. About 100K left after (CGT/Vendor)+costs if sold.
The concern is mainly that I must keep tenant payment to around 30% of his income which means if it costs him around 30K per year he(or anyone else for that matter) needs to be earning 100K.
Did I work that out correctly?Cheers!
CarlLatinoz
Hi Terry,
Thank you for the input. I appreciate any comments/ideas on this.
Keeping it for capital growth was my initial intension. In fact, it’s probably all I can expect from it at this stage.
I don’t see how I can make it positive cashflow for a few years without putting a large sum of money into the principal and being negative CF it’s also limmiting my max borrowing capacity.
Offering the tennant vendor finance is something I’m looking into at the moment though his problem goes back to his ability to borrow from traditional lenders for the rest of the money.
The tenant has only been in the country 13 months so he has no credit records here. That’s why I can only suggest creative finance such as a wrap or lease option.
He has enough credentials (character/capasity) for me to take a bet on him. Specially if I can tailor a low risk deal around his situation but for the life of me I can’t come up with a successful formula at this time.
Ofcourse, I can still take the property to the market if I can’t find a workable vias with the tenant.
I’m also in the process of finding a skilled and experienced solicitor in this areas (who is also honest in his dealings if I may add).
thanks again,
Carl
Latinoz
I also think that a 10-12% gain in one year is a bit rich unless the seller has made considerable improvement to the property. Either way, I would get a valuation done if I was (for some reason)sure the deal is worth it.
Also, From what I understand the owner is living in the property and wants to pay rent for some time. According to my calculations (from the figures you present) this represents negative-gear for you and the seller wins high throughout the deal. In this case I would study carefully my options in the oportunity cost (your cost of not investing your money somewhere else).
[thumbsdownanimLatinoz
