Yes it’s possible because i done a few before, but to be honest it wont be easy….The lender will want to see the following:

1. Good financial for both your existing business and the new one
2. At least 2-3 years and not a “suddenly” increase in profit from the last year only – they will average it out
3. A business plan or exit strategy if required
4. A account letter confirming the financial
5. The books in your financial MUTS be spot on – i seen some book where the business state they only make 50k each year…then suddenly when they want to borrow it goes to 90k

The following will apply:
1. Max LVR on new place would be around 60-65% ( depending on lender)
2. Rate will be commercial rate ( just is expected) and terms
3. 1st mortgage on both places ( some selected lenders will consider 2nd mortgage)

There a few more condition, but that’s the main conditions. But lastly HOW much of the equity are you using VS cash?

You can email me or speak to any another commercial Broker.

Regards
Michael

Dean, i keep it nice and simple.

1. depends on the property type- is it studio apartment? etc..make sure it’s OVER 50 square meters total living space and it’s not a student apartment or anything – it’s not impossible to finance, just more complex- but still possible.

2. Make sure it;’s a respectable company and builder- if not you might have trobule with the valuation. For off the plan it’s based on comparable sales + who the builder is..ie what sort of quality does the builder normally supply.

3. For off the plan you can order “stage valuation”, meaning as it becomes closer to the build date the valuation price will just go up…

Just remember the BANK will finance these units, it just depends who the client is and is the bank willing to finance to you( based on what you have and how much you earn…)

End of the day, it depends What your buying and who the client is?

Private investors dont like dealing with the public directly- your best option is through a broker; and be aware since this is a commercial deal and it’s complex; there will be a broker fee – the average is around 2% of the loan amount – but this will save you time, paper work hassle and confidence.

But just to answer some of your questions: do you have any residential security that has ATLEAST 300k equity? if so i be able to finance it through the big banks for you x-cross and all under residential rate but with a $25,000 cash out max.

But all in all, if you have no residential security and you want high LVR for this deal- it be impossible!!! that’s why they say the rick become richer- because only people “better off” will be able to get finance for this.

Regards
Michael

VIC and QLD = yes.
NSW, ACT = at settlement

st81hp79 wrote:

Hi Micheal,
I have purchased a block of 2 units before and  done huge reno to the property.
But I have'nt purchase anything on a 10% dep B4 using my dep funds from a equity loan.
I have read plenty of books and attended property investing seminar they all have the same quotes" Savers are Loser" us other people money to make money.

I have tired to call the 1300 74 5626 it's sounds like it's not your direct contact number

Cheers Jan

Hi Jan,
The number is correct it's our company's office number and the receptionist  Zoe normally forwards the message to us  brokers, as we are  always on the road   ( sometimes it goes to voice mail if the receptionist is that there).

I be in a meeting with some lenders soon. But i have received your message and i will give you call back within 1 hr.

P.s Your right- you need money to make money- that's why the rich always become richer!

Regards
Michael

04055 36088 – Direct number

st81hp79 wrote:

Thank you for your helpful replies,
My 2 previous IP is with Westpac. I took a $120,000 equity loan from my first IP with westpac.
to fund a deposit for my next IP which will be with CBA.
This time I am interested in purchasing a block of units which I only have enough for a 10% dep + stampduty
We are looking for reno block of units,hopefully to only let us be in position sightly negative gear with a 10 % dep

I''m guessing you never done this sort of "development" before if that is the case;  with 10% dep you be limited to only 7  lenders for a block of 4 unit under one title – One of them being CBA, but they will be harsh based on your LVR – They will only allow certain area/postcode to be accepted and certain apartment type as well.
So the first thing we normally suggest and offer to our client in your situation is to pay for a valuation on the property to be done first ( cost ~$500). But if you email me the address and link of the property your trying to buy i be able to give you a rough guidelines on approval rate for each of the 5 lenders for that property ( at no cost).

So in short to answer your question, yes you can get a loan for block of 4 units with 10% dep and no it wont be with westpac ( there min LVR for this loan will be 80% to avoid the LMI) . The property will most likly be negative geared for the first 3 years.

Without knowing your full details ( Area, postcode of the units, Your total asset and income etc…) i can only provide you with a general outline on what to expect. But PM me or email – [email protected] and i can post you some form, and i can give you a more define answer.

Regards,
Michael

HI.

Block of 4 units is fine with standard residential lending, LVR of up to 90% as well – but only a handfull of lenders will consider this. The top 3 main players are St George Bank, Suncorp and Macqauire bank.

Anything more then 4 units (up to can still be residential lending but with LVR at 70-80% max. Selected non banks.

One important point you will need to comfirm with your lender is; what are the conditions for a 90% LVR – because the bank might accept the loan but the the insurance (LMI) might reject your loan!!!

If your having trouble finding out, PMS me which lender your with and i be able to tell you the main conditions.

Good luck!

ING bank -will do a “reduced” LMI for LVR up to 85% , but up must be in your current job for more hten 2 years and no default history on your credit file at all.

AFM – The offer no LMI up to 90% BUT the LMI payable must be under $4380 (meaning the place you buy is under $250k)

HSBC – From time to time they have deals for no LMI ( did one 2 month ago)- No LMI up to 85% – must be in job for more then 3 years and no default also they will only pay $7,000 of the LMI amount ( you fork out the rest)

There are 3 more private lenders and a few non-conforming lenders that will do it on a case by case basis.