Forum Replies Created
Yes work very well here.
Richard Taylor | Australia's leading private lender
Ryan
Yes i would agree with a comment Terry posted some time ago that most lenders wont lend knowlingly where the property is being onsold by a way of an instalment contract.
We have to have National Credit Approval to do so with FHOG Pty Ltd.
Mr A holds Title to the property and if he has a mortgage this is secured against the property. Sharon can register a Caveat against the property but you are right if she makes payment to Mr A and he doesnt pay his mortgage then the property can be repossessed by his Bank even though her repayments are fully upto date.
Richard Taylor | Australia's leading private lender
Mr A negotiates a lower price than Sharon was paying for the property as her finance has been declined and she has lost her power of negotiation and then onsells the property to her at a higher price.
Buys property for $200,000 and onsells if for $220,000.
Charges her a margin over bank rate or whatever yardstick rate he uses and she pays P & I on the higher loan figure.
Richard Taylor | Australia's leading private lender
Certainly is copyrighted but happy to give away a copy of the book to any client as a present.
Richard Taylor | Australia's leading private lender
Sorry Ryan you are wrong.
I spent 14 years running and owning First Home Owners Group Pty Ltd (A specialist wrap company) and thats all we did.
Take applications from people like Sharon who wanted to buy a house and had traditional finance declined.
We then purchased the property and wrapped it to her the same day.The point i was making on the repayments was normally people seeking instalment finance dont have much by the way of deposit and the repayments on an installment contract will always be principal & interest so on a loan of $369,000 the repayments at say 1.5% – 2% would be $665 / month (not allowing for any interest rate increases).
Richard Taylor | Australia's leading private lender
Heh GOM i was serious lol.
Dont something similar many times before.
Richard Taylor | Australia's leading private lender
Hi Sharon
Hate to say unless you have a half decent deposit the interest on a $369,000 loan will more than $550 / week let alone a P & I loan.
You say that you are unable to get finance thru a traditional lender due to having an overdraft but in small business this is normal and as long as you have a good savings pattern or sufficient deposit then running your own business and also running an O/D will not have any bearing on the application.
Richard Taylor | Australia's leading private lender
Hi Michael
Sounds to be like you have been using the wrong Broker as there is absolutely no difference whatsoever.
If you are PAYG then the lender will take your Gross income work out the applicable Tax rate and work your serviceability from there.
If you self employed then lenders will take your net taxable income, add back any wages that relate to you, superanuation etc and non recurring expenses and take this figure as your income. Of course if however you use your own phone and claim this thru the business or put the weekly grocery bill down as entertaining then unfortunately this will not aid your bottom line.
In fact some lenders treat the applicable addbacks more favourably when you are self employed as they understand the process.
Richard Taylor | Australia's leading private lender
Kaytee
Tell the selling agent your finance has been approved subject to the kennells being removed prior to settlement as the valuer made comment on them.
Richard Taylor | Australia's leading private lender
GOM wanna drop me an email.
Richard Taylor | Australia's leading private lender
Burns would you like to give us some information and maybe we can offer some further advice.
Richard Taylor | Australia's leading private lender
Crest drop me an email i am sure i can assist.
Richard Taylor | Australia's leading private lender
emej they will say they can do nothing.
We could apply to have it removed for Ross but costs around $1500-$2500 and takes about 6-8 weeks.
Richard Taylor | Australia's leading private lender
Yes there are a couple of firms Nationally who advertise their services to this effect but as i state is still not that easy.
A judgement or default can only be removed if the correct proceedure was not followed under the Act.
You dont just rock up at the reception of Vodaphone with a bunch of flowers and ask the receptionist if she could sign a letter asking for it to be removed and expect by the following Friday to have perfectly clean credit.
I can put you in touch with a couple of firms who are experts in this field that we use however they will not and cannot remove a Part X.
Richard Taylor | Australia's leading private lender
Assuming the unit forms part of a strata plan then the roof will be the responsibility of the Body Corporate.
As long at there is sufficient funds in the sinking fund and each lot has the same number entitlements you shouldn't be in for any additional expense.
Richard Taylor | Australia's leading private lender
Lalibella i think you will find it is oly SA that wraps are not allowed in however normally Lease Options would be used here.
Richard Taylor | Australia's leading private lender
Yes there are lenders that will lend on the gross realisation of the completed project however one issue i can see is that when you knock your current house down for a period of time you will only have the land and this may well be worth less than the current mortgage.
This will make lenders nervous however as anything without more information difficult to give you a definate Yes / No answer.
Richard Taylor | Australia's leading private lender
Hi Michael
Depending on the level of bad credit you might find it almost impossible to get financing for such a project.
There are so many variables and without knowing more it is too hard to provide you with an answer.
Richard Taylor | Australia's leading private lender
Yes wraps can be a great way to go (god should know i have done enough of them) but like with anything in life your own circumstances change and your'e requirements change with this.
You might start being quiet happy with the cash flow but then as time goes by want some capital growth or a combination of both.
Wrapping can be time consuming and hardly worth it if you only want to do the one deal.
Done over time can produce a very nice monthly return.
Richard Taylor | Australia's leading private lender
Hendrick
Before you rush in and spend your money have you obtain some specialised advice in relation to buying in a Company / Trust name as whilst it can be a ideal structure it is nor for everyone and there are a few disadvantages.
We have financed 101 forum clients in a variety of entities over the years but say to all of them make sure you understand both sides of the arguement before parting with your hard earned dollars.
In saying that if it is the way you want to go then no real issues.
Many lenders dont offer interest rate discounts or allow the structure to fall under their packages however in saying that there are some excellent products out there for Company/Trust lending at the moment.
Richard Taylor | Australia's leading private lender
