Hello again,
Another scenario for you.
60 year old couple, male figure doing casual work, would like to invest, let’s just say approx 20 K.
Problem 1) No steady income from employement
Problem 2) Existing house can act as security for
new loan, but no job to pay monthly
loan repayments
Problem 3) Age – The likelyhood of the 60 year old male finding full time employement after being self employed for the last 44 years, pretty remote!
Problem 4) How to get loan, even though cash of 20K to invest as security?To date, I have suggested Positive Cash Flow property, but their loan history may be a bit iffy and I’m not sure if they can access a loan now, without employement details. I thought of them being silent cash partners, but returns are minimal. At present their money is earning something around the 4% p/a mark
Any suggestions?
Cheers
Sooshie [
]There are no problems, only solutions!
Sooshie,
Why do you say that returns are minimal ? 4% on their day now or offering them 13-15% as investors in a Wrap……Fairly heavy difference and worth chasing. For you it means no money in the deal and still make money from it.
Just a thought.
Enjoy
AD [:0)]Enjoy
ADSuccess is not the result of sponataneous combustion. You must set yourself on fire.
Reggie LeachFrom a broker point of view, there are several options, but my suggestion is a no doc’s loan, with self certification of income.[
]Hi there,
I’ve wished I was an octopus this last week since my husband is overseas for work. [:0)] Alas, its just been me and I couldn’t get a chance to breath let alone post a reply.
[?][?][?][?][?][?][?][?][?][?][?][?][?][?][?][?]
AD I’m not sure I follow what you mean exactly. Do you mean that I should use their money to invest in a wrap?quote:
4% on their day now or offering them 13-15% as investors in a WrapWhat do you mean “on their day now”? I guess I’m a little slower these days!
Hilary, how would they go about doing this and once done do you suggest investing in a wrap?I believe they should wrap, it make sense to supplement whatever income the male gets. I think they may be thinking in investing in a business.
Look foward to your replies
Cheers and ‘ave a great long weekend
Sooshie [
]There are no problems, only solutions!
A business investment at their age won’t help ease them out of the job mart – passive income from real estate will. Lending wise, any self employed person(for 2 years) can get a no doc’s loan, self certifying that they can afford the repayments wihtout suffering hardship, and with no proof of income. BUT they shouldn’t do this if there is any doubt about hardship, needless to say!!!!!!!!!!!!! AND of course, you will pay about 1% over market, so it really has to be a good deal to make it worthwhile. But, we all know, there are always great deals out there – just make sure the figures add up before you commit.[8D]
Hi Hilary,
Unfortunately he won’t get a loan now. I wouldn’t even loan him the money. To risky. He could get a no docs loan, but would suffer hardships due to unemployement.
Will think harder on the situation. I believe they want to buy the business for their children to help them out.
Sooshie [
]There are no problems, only solutions!
]
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