How 2 get more $$ when bank says NO!!

Dan

It sounds like you need to put more work into a structure that will enable you to go further. I have spent time and money to ensure I have a good structure, ie. Company as trustee for a family trust with me as director. This along with a good broker or personal banker means that my limit is or can be as far as I can push the boundaries. I don’t know what costs are involved in restructuring but with positive cash flow investments I recommend looking at and learning more about structures

key

Dan

I am no expert, but basically if a company as trustee borrows money to buy a property for a trust, the company owes the money, the director gives a guarantee and when the company reaches its borrowing limit you can start another company. Trusts and company rules are complicated and not cheap (@ $2000 +) so I recommend getting hold of some solid info on the subject a good solicitor and some form of personnel banker, I think accountants are also full bottle on trusts etc.

Hey there Dan,
What KEY is saying is that you can replicate the structure and do the same thing over and over. The other thing to remember though is that you need to have the deposit available to make this all work. Guarantees are limited to the vompany but you need to have deposits to obtain the loan. So in essence you are limited by your ability to provide deposits….or you have to think creatively how to obtain property. There are always options.

Enjoy
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Success is not the result of sponataneous combustion. You must set yourself on fire.
Reggie Leach

Hi,

Yes. I think that the repsonses here have just about nailed it!

DavidU… I think LVR does matter, not at the CRAA level, but at the mortgage insurance level.

Sooner or later they’ll call stumps for you and then that will be it. Then you’ll have to go with non-conforming lenders if you can’t get back to 80% LVR lends.

I deliberately chose only to ever do 80% loans because I didn’t ever want to be told no by the mortgage insurers. Once I made this decision it was then a question of finding an answer to “how can I always afford 20% deposits”.

Answers come once you ask the question.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
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Dan,

Can you be sure if you have never tried? I wish I had $30,000 of income when I started seeking finance!

There’s always a way when you see the problem and work thru it.

Bye

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Dan, if you are on a good wage and have 4 cash flow properties, perhaps you haven’t had them re-valued to find your extra equity? and hence deposits? Are they just rentals? If so, have you thought about wraps/lease options for deposit funds?

Hi Dan,

I come across this very often with the banks, the best thing to do is go through a large brokerage organization as they have more leverage with the banks.

I have gotten loans approved with a DSR of 49% and an LVR of 85% (with a mortgage insurance waiver).

The trick is to know the right guys in credit at the bank, which is something individuals cannot do, they need to use a broker.

If all else fails you can go for split banking which i do not normally recommend. From the servicing point of view, split banking works wonders, you are not hiding loans from the bank, it is just the way that bank assesses other banks loans is much better than they assess their own, if that makes sense?

Thanks

Al

Hi there,

I was just reading all the questions and replies. I read and thought I understood the answers, but I obviously don’t as I still have questions. [?]
My question is:

a) does the bank take into account the Personal Guarantor’s income?

b) Can the Personal Guarantor ever get maxed out? (income and ‘lendability’ to the trust?0

thanks alot

Y’all have a nice day

Go Girl