Forum Replies Created
Hi Dafunk
Firstly welcome to the forum and hope you enjoy your time with us.
I am great believer in borrowing 100% of the purchase price where possible so i would probably looking at using a Term deposit as collateral security and borrowing the full amount.
All you need to do is wait for the IP to increase in value and then release the cash as security.
Wash funds and repeat for number 3.
Building a portfolio of 40 + homes won't happen over night but with help and guidance it will happen.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Derek there are a couple of blended loan products that might be able to give your cake and eat it.
Still as the boys have said financing a 95% lvr on an IP without a good veda score is going to be difficult.
If the property is investment then there will be no stamp duty exemption so you are going to need to cover this.
Again this maybe possible with a blended loan subject to a few other facts.
We did one for a forum client week before last where we sourced the property and managed to structure the loan so they borrowed their reno / acquisition costs in one.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Although did a nice size Commercial deal for a forum member during the week where the interest rate was actually cheaper on a Com rate that the client had on their residential loan.
On the figures you have outlined certainly should be doable.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi David
Yes that is correct.
The loan and Title remain in your name and the buyer pays you a series of installments which you credit to his loan account.
You could offer a potential buyer a fixed rate on the installment contract to run in parallel with your fixed loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi David
Welcome to the forum and I hope you enjoy your time with us.
Have you considered trying to sell the property thru Vendor Finance.
We are receiving a large number of enquiries from both investors and buyers wanting VF so definitely a healthy market back again for such a product.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Matt sorry have to disgree Brisbane insurance prices have not gone up because of 2011 flooding.
In saying that you will not be getting 6% yield in Brisbane.
We are buying for our clients in other areas.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tam
Yes there is nothing new in that and it used to be done all the time.
Course these days you are required to declare it to your lender and the valuer and he / she will adjust the price accordingly.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I employ someone personally to manage all of my Qld properties as i have never found a property managing agent gives them the same care and respect and the reporting i require.
Inter state properties are difference and i use a property manager.
Sure like everything there are good PM's in and around Brisbane i just haven't found anyone i trust enough.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Good be worried I would run a mile….
If they can't answer a basic question like this imagine how they will go when you get into sophisticated loan structuring question as your portfolio expands.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rob
No you certainly make your own offer without using a Solicitor and we do it every day a week for clients who buy for.
In saying that i am a great believer in always getting a Solicitor to look over a Contract before executing it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Grumble
Congratulation on building such a portfolio however it sounds like your lending is rather messy.
I built my property portfolio which currently stands at $25M + and 43 properties by carefully planning and structuring my lending.
Bar the shouting we have repaid the entire debt by adopting a couple of strategies which we now adopt when working with our property and finance clients.
Despite what Mark stated a Property Investment adviser cannot provide you with any financial advice unless they are a Licensed Financial Planner.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sharyn
As Jamie mentioned if you tell us what you are looking for in a Mentor weight be able to assist.
I took on a number of students a few years ago all who have done very well and this year my partner and I are trying to make 100 equity millionaires.
Hard to point you in the right direction unless we know a little more about what you are trying achieve.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Just completed a 80% residential lend on a newly rolled over SMSF on a Heritage listed building in a large regional town in WA so maybe i missed the changes !!!!
Not one i use regularly but no mention on their Broker website.
Ivan, last year i did a series of SMSF lectures around the Country and had a member of the audience (who turned out to be a Bank credit officer) ask me the same question.
If he hadn't come upto me and given me his business card at the end i would have thought he was the joker in the pack.
Highly concerned at what they teach them at SMSF credit school.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
We use a Specialist Broker and steer out clients that way.
Just had a case where the client had only owned the property for a matter of weeks when the Hot Water "blew up".
He contacted the Insurer direct and they say No it was covered yet we got wind of this sent it back to the Broker and "Heh Presto" claim honored and all paid for.
Clients often want to go the cheaper option but sometimes you do get what you paid for.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Work very closely with a number of development orientated real estate agents.
Cheers
Yours In Finance
Richard Taylor | Australia's leading private lender
Have to say i disagree totally.
We are not touching Perth at the moment as there are plenty of better areas to invest without the associated risk.
Putting forum clients into far safer areas with combination of growth and yield.
Not so say that Perth will not come again but the timing is just not right now.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If you mean can you allow the IP debt to capitalise and then claim interest on the increased debt them regretfully no
Nothing to stop you having the rent paid into a 100% offset account linked to the PPOR debiting the IP interest payment once a month.
Then setting up a separate Invt LOC and using this to pay the Council Rates, insurance, etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Preethy
I personally like both towns but convinced you get much for 220K in either.
Like any area there are certain parts of both you need to avoid like the plague.
At the moment my partner and I are not buying for our forum clients in either town as I believe there are better opportunities in both NSW & VIC this than the towns mentioned.
In saying that we focus on yield and capital growth.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Remember on a residential property a higher rental yield doesn't mean an increase in value as a valuer is not valuing on that basis.
More often than not he or she is valuing the property based on comparative properties in the immediate location that have settled within the last 3-4 months.
A Commercial valuation is entirely different.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
A Contract can have a variety of terms and conditions which if accepted by the seller can achieve what you want.
TerryW who is a regular contributor on the forum is a lawyer and based in Sydney.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
