The risk is he will default and you will have to take possession action to recover the property.

Given he has already given you $650K this may not be such a bad thing.

Of course if he defaults on the first mortgagee this maybe another matter.

Make sure your Solicitor documents the $200K Vendor Finance by way of registered 2nd mortgage and check the legislation issues in WA to make sure you dont need a Credit License to undertake such a strategy.

Wishful as Terry has mentioned likely to be a good 7 working days but i cant believe they have asked for them in the first place.

Doesnt sound like the Bank johnny who put the deal together for you has any idea.

With No LMI quotes would not be a requirement.

Jssmith

Sorry can i ask why you had to pay him a fee as he would have received a commission from placing the lender for you  ?

Henrik

We still finance a reasonable number of FN deals in Florida but the US lender we use doesnt lend outside of the State.

The other US lenders we deal with dont take Australian FN only British FNs applications.

Hi Jaime

Firstly welcome to the forum and I hope you enjoy your time with us.

Difficult to start suggesting where to start looking until you know what you can afford and this is going to be based on the ability to service the loan and the available equity you have in any current property or cash in hand.

I appreciate it is a public forum but if you wanted to share a little more general information we could probably give you some suggestions.

I certainly wouldnt be putting down 20% deposit on an IP when you have a PPOR loan.

You would use the 80K savings to pay down the PPOR debt and then take out a LOC or interest only loan secured against the PPOR for the same amount.

Then use these funds as deposit for the IP and take out a separate standalone loan for the balance.

This way the interest on the whole loan becomes Tax deductible.

Yes Terry guess it wasnt bonus commission that month for loans that are cross collateralised.

Darren drop me an email and I will email you my 10 reasons why you shouldnt do it.

By the way QS = Quantity Surveyor.

Terry is correct as usual.

Might find some lenders get a little nervous these days and ask for Stat Dec or a letter from your Financial Planner advising you are aware of the risks.

Your Broker should be able to guide you through the easiest path.

Yes i agree Dan,  Richard Gear here.

And Yes i can evidence both copies of registered Heron Todd White valuations (we use them for all of our Developments and have done so for 14 years) and copies of executed Contracts.

Such evidence has been provided to the ASIC on a couple of ocassions.

Oh and by the way you must be having a laugh. Sure the ATO would be pleased to hear this form of marketing …..
TIC focuses on negative gearing strategies for tax offset purposes.

If the 3 year fixed rate your lender has quoted you is only 92 bps higher than the variable rate i would be looking to refinance elsewhere.

Realistically the fixed rate would be nearer to 140 bps higher so sounds like you maybe paying over the odds on your IP's.

Yes a lot harder and more expensive to refinance away a fixed rate loan.