Forum Replies Created
Wow BB went thru a Broker and were still badly advised.
Unless it is to late i would be seeing if you can't get it fixed up immediately so at least you are on the right track going forward.
There aren't to many reasons i can think of why you would cross collateralise the securities.
I have written an article on the correct way to structure the loan going forward and the reasons why you don't cross your loans..
Shoot me an email if you want a copy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Rick who is the current loan with and was it done thru a Broker direct.
If you give us some more info we can advise you of the particulars lenders 'cash out' and valuation policy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Miller based on the fact you cant squeeze a higher valuation out of IP 3 with another lender then way to go would be:
1) Refinance IP 3 to a 90% of the valuation. $150K x 90% = $135K less existing loan of $90,000 = $45,000.
2) Purchase of IP 4. Take 45K raised from IP3 Refinance less stamp duty and other acqusition costs and use balance of funds to apply for a standalone loan secured against IP 4 solely.
Once you now the exact valuation on IP 3 you could play around with numbers to see the savings in LMI etc by reducing or increasing the individual loan amounts.
Any questions ask away.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Being a Builder can be a disadvantedge as far as financing is concerned but it also opens up more avenues.
I wouldn't have built my property portfolio so quickly if my partner hadn't been a Builder but then i guess he didn't have the financing capabilities or equity to grow without me so a perfect arrangement for the time we worked together.
Maybe teaming up on doing a JV with someone might be the way forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Nigel has mentioned standard finance is available in FL due to the influx of UK buyers.
For outside FL you need to be having minimum loan of $100K
Again i am unsure why you buy something out in the depths of nowhere when you could buy a quality investment in FL.
Why not talk to Nigel and see what he can suggest.
He has vast experience in the US market.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Chris
I wish i could give you an suitable answer but i can't.
Last year I went over on a buying spree for clients picking up really good investment properties and organising UK finance with a number of lenders. This year the avenues have all dried up.
I am not aware on any UK lender that will consider a loan for a non resident even if the are a Citizen mainly due to the total lack of liquidity available for lending in the UK.
Even with the new loan rate loans the UK Govt are offering to Banking lenders over there to open up mortgage access these lenders are not prepared to consider application form non residents.
More than tough i hate to say darn impossible at the moment.
Will update the situation during the year if things change.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Cheers Nigel Yes 33 degree days and 85% humidity aren't fun at the best of time.
Local supermarkets have run out of buckets for sale but not as concerning as the local coffee shops which have closed because they have no clean drinking water.
Thankfully we are not Bundaberg though.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Appreciate the warm wishes guys.
Further update just opened the front door and it is pelting down and storm on its way tonight.
Just what we need more rain.
Thank god i invested in an amphibious vehicle like the one on Top Gear.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes they don't call it Chapel Hill because we are down on the flat that's for sure so ok on that side.
Stream we had in the front of the driveway some 60 metres form the house had never seen water in it until the weekend so more concerned whether my i could drive my car out.
No triple 0 calls needed here just felt like camping for a few days with no hot water and living out of an ezky.
Anyway as i say i am back and keen to retain my #3 hard earned spot on the posting ladder.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Michael yes you are on the right track.
Get your broker to order the valuation up front and then at least you can see whether your offer is within the ball park.
We did one for a Melbourne forum client last Wednesday which came in at $385,000 and the client offered $365,000 and had the contract accepted.
Admitedly the valuers report will now be changed to reflect the lower purchase price but the buyers knows he has inbuilt equity from day 1.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Stickers
Firstly welcome to the forum and i hope you enjoy your time with us.
Certainly financing such a deal needs to be carefully planned as getting it wrong could be expensive.
Construction loans involve progressive payments and the lender will charge interest on the outstanding amount.
In a standard build you would normally expect to have 4/5 draws until the building is complete so the loan increases over time.
You need to remember that the monthly interest will need to be serviced along the way until the property is complete and the units can be rented so you could either look to capitalise the interest during the construction or hold a cash buffer upfront to meet the monthly committment.
Then lender selection is important as you will have two properties on a single title and many lenders will either not like this at all or will limit the loan to valuation.
All lenders will be happy to provide interest only during the construction period but get your broker to give you some options to allow an interest only loan for a longer period as the with the equity and the added rent you could expand your portfolio fairly quickly.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say my early 20's are a bit of a blur.
Too many University parties to back up from.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ok Cantona won't hold that against ya.
I'm a pom originally so good mix on the forum.
Happy Australia Day everyone.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Kid don't waste time just get Jamie on the job and get it sorted professionally.
Just out of curiousity where were you an original resident of ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry for the late response.
No have to agree with Jamie i have never heard of anything like it in my life.
Maybe your Broker is looking to diversify his income lever because broking isn't going to will.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Neil from a financing perspective a security with a built in downstairs will not be palatable to many lenders.
Many will consider it as a specialised security especially if you have 2 kitchens, bathrooms etc.
Similar to a turnkey arrangement so might need so careful massaging a dealer thru to obtain a meaniful lvr.
Can think of a couple of lenders though that would not have an issue.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry as a SMSF specialist i would question whether buying in the US and borrowing funds at 9% thru your Super Fund could be seen as a sound investment decision.
You would be better of to do a related party loan at 1-2% and personally claim the Tax loss in your own name.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Danger and some brokers do a valuation upfront for their clients to ensure they are not overpaying for the property.
No lender will go past 90% on NRAS even BoQ.
in relation to Sam's query on resale that is not the case and you can certainly sell the property at anytime like any other property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Not much to say now as Terry has very adequately set out the position over his 3 responses.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Hagget
Better late than never.
Just talk to Jamie and get some proper structured advice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
