All Topics / Finance / 50% bank 50% vendor finance.

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  • Profile photo of wrappackwrappack
    Member
    @wrappack
    Join Date: 2003
    Post Count: 182
    February 13, 2004 - 12:49 pm

    Lets say I find my hypothetical 5Million dollar property, and the vendor is willing to VF say, 2.5M at 7% for 5years.

    How much cash in the kitty would it take for a bank to lend 2.5 Million to an entity such as a trust (both with and without a personal guarrantee?)

    I know its a difficult one, but are there any mortgage brokers out there who have some ideas on raising large amounts of finance on vendor financed 2nd mortgages?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    February 13, 2004 - 2:19 pm

    Hi Wrappack.

    I am just guessing, but imagine a LVR of around 65% would be possible. You could possibly do it without any cash, but I have yet to find a lender that will not ask for personal guarrantees.

    Also be aware that valuations on expensive properties can vary a lot.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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