[
]Finance was approved in writing on Monday. Just in time for the special condition we write into our contracts, “14 days to secure finance from exchange”. After receiving 11 knockbacks, reason:because we have a trust. We were not deterred, no.12 said yes, we knew someone would.
So we now have 5 properties in the trusts name, with one of us as guarantor. Approval only took 4 working days.Now the same lender is already discussing LOC, EXCELLENT.
Do Not Be Deterred In Your Goal For Financial Freedom, it is only your Mind Set that can stop you or propel you. We think, we dream,we see, we talk financial freedom as if we have are already there.
Do not listen, hear, believe that Financial Freedom cannot be achieved, this is coming from people who cannot see, believe, hear,listen to it themselves. These people can be Poison….
All the best to anyone, everyone
Dynamic Duo[]Hey dynamic duo,
That’s excellent. Good on you.
I can sympathise with you your situation. We too are in a similar boat. This week has been a very bumpy ride!!!
I have faith in our broker, and G-d. Things will work out for those who persist.
Persist, Persist, Persist.(and sometimes pray)[
]Del
I thought if you had a trust you went guarantor and there was no problem getting finance (not that I have tried myself yet, havent even got the trust set up!).
Just wondering if you used a broker?
This is actually a great post – why? Because it shows the excitement of property investing through the Dynamic Duo having taken that step toward success (EXCELLENT – I love it!) and also the underlying ‘just keep going, persistence’ that is also required often as Wilandel mention.
Good on both of you and keep going!
Tas [
]I agree these are the types of posts that we all need to hear. There are so may people out there that will knock you down because of your decision to invest, that positive posts like this one can be the saving grace in a really bad day.
Positive thinking is worth its weight in gold.
Thanks guys.Darren
Getting a loan for a trust is easy. What went wrong? Most banks will do them, some low doc lenders won’t (eg ING and Suncorp), but if you have individual trustees, you loans could be in the individual names instead of the trust. You must have a corporate trustee.
Most importantly, I hope all of these applications don’t go on your CRAA! Did you actually submit loans applications?
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Getting a loan for a trust is easy. What went wrong? Most banks will do them, some low doc lenders won’t (eg ING and Suncorp), but if you have individual trustees, you loans could be in the individual names instead of the trust. You must have a corporate trustee.Most importantly, I hope all of these applications don’t go on your CRAA! Did you actually submit loans applications?
Terryw
[email protected]
Hey Terry, as I said we tried 12 lenders and finally went with Heritage, our trust is in individual name, it is a Discretionary Trust, this worked best for our current situation, properties in name of trust as is finance and one of us as guarantor.
No we did not submit applications, we asked they all look at our documents and if they preapproved with all that information then we would sign document to check CRAA. So only Heritage is on our CRAA. It has been a very interesting 2 wks. As said, I never give up. CAN’T is not in our vocabulary. Can’t means something is impossible and nothing is impossible. Our 3 yr old recites this daily. Thanks Dynamic DuoThats good about the craa. I think it probably wasn’t the trust that was the problem?? who did you try?
With an individual as trustee you can get the loan in your own name, and not tell the bank about the trust. it has the same tax consequences. Check with your accountant first of course. I have done this myself-a loan in my name on behalft of the trust.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Dynamic Duo and everyone else,
Just thought I’d let you in on our drama this week.
We had “verbal approval” subject to the reading of the Trust Deed, from “a bank” a couple of weeks ago, and everyone thought that there would be no problems, especially us!! We cautiously went ahead with the loan, and went “unconditional” with the contract…
Monday nite at 5pm we found out that the bank had “DECLINED OUR LOAN” [
!][!]. Well, we were in a spot of bother, to say the least. Settlement is 22nd August.Our broker, suggested another lender and Tuesday we signed loan papers for the new lender. The broker faxed the 200 pages “urgently” to them.
We got “unconditional approval” at 4.15pm today, and we can now sleep. Settlement in 14 days.
The moral of this story is “verbal approval” means nothing. BEWARE…………Nothing is approved until you see it in writing.
PS.. The lender we got approval from is Heritage, same as Dynamic Duo.
PSS.. The Broker was Stu..THANK YOU[:X][:X]
Have a good weekend all,
Del
My pleasure Del! [
]Yes, NAB made the most nonsensical decision I have ever had the misfortune of being part of. I don’t have any issues with naming them because their assessment was INSAIN!
That is good advice Del.
One solution is to use pre-approvals. This will also speed up unconditional approvals and minimise any problems. (I’m sure Scott S will agree)
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auThanks again Stu,
You can book us in for a pre-approval or two first thing next week.[
]However, it is nearly worth the pain of this week for the BIG lessons that we have learnt.[
]I don’t want to go through another week like this one too soon!!
Del
PS…We went to the pub for tea to celebrate![
]Windel and Stu
Let me guess, they wanted to take a charge over the company as well as personal guarrantees? Or was it a Hybrid trust?
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
NAB and stupid decisions seem to be common lately……Promises, promises then problems, problems….. Part of the fun of property.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
]Finance was approved in writing on Monday. Just in time for the special condition we write into our contracts, “14 days to secure finance from exchange”. After receiving 11 knockbacks, reason:because we have a trust. We were not deterred, no.12 said yes, we knew someone would.
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