Forum Replies Created
Arvee
Why not send Chad Simmons a PM or an email as he is a regular contributor to the forum and very active in the Texas market.
I know many of my clients who i have referred to him have been extremely happy with their Texas acquisitions.
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Richard Taylor
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Licensed Financial Planner. Ph: 07 3720 1888
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Hi
Just to let to echo marc’s sentiments in saying well done to get this far and i hope the next part of the jounery is just as much fun for you.
With the advent of the nodoc loan you are able to borrow upto 85% of the purchase price / valuation in certain post codes without any evidence of income / expenditure, assets or liabilities and therefore as long as you dont over commit your borrowing capacity will be a lot higher than you may think.
Just remember as stated not overcommitting is the prime function in taking out any loan especially with no evidence of a capacity to repay being required. Think there will be days when your tenant moves out and you need to subsidise the interest repayments so always funds in a rainy day account.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
You Gross profit margins look a little skinny for my liking but Yes 80% of end valuation is still available with No proe-sales.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
I think it all depends on the LVR you are after.
Remember being PAYG you can still qualify for a lodoc loan and not require any ABN.
As Terry mentioned you may well find that if you partners income is high enough you will not need to worry about yours although in saying that i still believe that you would be able to obtain a loan on your temp income.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Nathan
Depending on the number of investors and the size of the amounts you are looking to raise it could be a very expensive exercise.
Check out the full terms of the Managed Investment Act and you sill see the rules and regulations on whether you can offer a Memorandum to Invest or require a full Prospectus.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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This is available by a few lenders for both owner occupation and investment.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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Wayne
Which part of the Country are you in ?
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
This could be done one of 3 ways:
1) You do nothing but offer her support and she obtains a 100 / 105 % loan for her first property.
2) You lend her 5% and thats it and she applies for the loan in her name and your interest is limited to the amount of the 5%. She is the one on the title and the loan application.
3) You look to guarantee an amount of 20% + and offer the bank a mortgage against your property for such an amount. Your Guarantee is limited to the 20% and can be released after a revaluation on the security she is purchasing. Many lenders now offer such a Family Guarantee style product.
May take a year or two however in saying that if she is making repayments and the balance is reducing and the value of the property is increasing it could be a shorter period than you think. In most cases your income would be assessed to ensure that you could support the 20% Guarantee amount.
There are a few other strategies I can think of but these would be the main ones.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
CGT is calculated on the Contract dates and not the settlement date so waiting a day or two maybe worthwhile dependant on your circumstances.
If you need to delay the execution it might be worth offering the potential buyers with some form of incentive to hold on in there.
Remember that a contract is only binding and dated when you the vendor accept the offer and the agent or solicitor signs off as Stakeholder. Why not get the contract drawn up and to the vendor and then hold off accepting the offer until the timeframe is suitable to you.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
I have a commercial Real Estate agent here in Brissie who asked me to help him put a package together exactly as been outlined.
The small units where for sale by the developer for $200K each and many of these small businesses could find may 10-15% deposit but not 30% and many had only been trading for 18 months and would not qualify for a tradition com loan.
Think the idea has a lot of merit however in saying that 85% LVR is available through traditional sources in certain cirumstances.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
The idea is not a bad one and I guess if it gets you into the property you want then it is a workable strategy.
You could probably do a little better on interest rate on the reverse mortage but as long as your mother is happy with the situation then that is fine. Make sure that you keep the loan for repayment of the business debt and the balance of the home loan proceeds separate for Tax purposes.
Remember only take on a liability that you can afford to repay irrespective on how you structure it.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
jambv
Sanjiv has made some good points already.
On the financing front to be honest dependant on the terms of the managing agreement you might be lucky to finance the property full stop let alone get anywhere near 70% LVR.
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Richard Taylor
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Licensed Financial Planner. Ph: 07 3720 1888
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Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
dragon
One thing you should do before you do anything else is decide what sort of structure you are going to use to purchase the property i.e personal name, Pty Ltd or Trust Structure and this will obviously depends a lot on your own circumstances and plans for the property.
Secondly you should ensure that you make sure the loan is structured correctly and that the property is not X collaterailised (carefull planning maybe as you need to make sure you are not adversely affected in future deals) so a good MB should be able to help.
With regards to questions like whether you will incur LMI it is difficult to give you an answer without knowing a little more about the dal and your position.
On the Accountant front like anything these days they don’t have to be in Tamworth as phone and email works wonders.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
As the previous 2 posts mention you cannot compare like with like as they are 2 totally different beasts and both perform different functions.
If in doubt go and get an alternative opinion or point of view.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
If it is in BCC then do a quick drainage search and that will give you a fair idea.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Nat
i cannot see why SGB wouldnt take the end value.
I have done many a deal with the dragon that basis. Jist threaten them you will go elsewhere.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Yes it does make sense but in saying that i am more of an interest only man with offset than a P & I loan.
Just remember once you have paid it off you are unable to get it back again and claim the tax deduction. If you leave it in the offset account you can always get it back.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Hi SOTF
i will not make comment on your existing structure but merely ask the question you posted.
The easiest way is to finance the loan through a standard construction loan secured against the land whereby the lender will advance payments in stages as and when the building progresses.
According to your figures the land is worth $140,000 and the construction costs $160,000 giving a total value of $300,000. If you finance the entire loan your total debt will be $85,000 + $160,000 = $250,000. This is a LVR of 83% and on this basis would incur LMI.
2 ways around this is
1) Either you put in the 3% from you cash resourses as you appear to paying P & I on these loans.
2) You X collaralise the securities (not my favoured course of action) and get the lender to advance 100% of the contruction amount without LMI.If you want to look to purchase further IP’s then Option 2 is probably not the best way around it and the loan would need a bit of re-structuring.
I assume that your $80,000 is being placed in an offset account.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Daryl
2 ways to get around the LMI:
1) The Guarantor who i assume would be a parent or similar to borrow and lend you the 20% deposit and you apply for the loan on a standalone basis.
2) A family Guarantee style loan whereby the lender secures the 20% deposit against the Guarantors security (normally first mortgage is required) and their Guarantee is limited to 20% of the purchase price plus costs if required.
This is a common style product for clients purchasing their first home where their parents are happy to assist.
Once the property you are purchasing has increased in value and is less than 80% of the property value then the Guarantors obligations are released.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Must admit i wouldnt be sitting here today with my feet up if it wasnt for wrapping.
I think if dont correctly and in the right numbers it can very very profitable.
It is like anything it is not an overnight guarantee to instant millions. It look us 9 years to develop our business and many many hours of hard work.
All in all i think it was the best business move i ever made – personal opinion only.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
