Equity partners

Viewing 5 posts - 1 through 5 (of 5 total)

bigmark
Participant
@bigmark
Join Date: 2004
Post Count: 7
July 20, 2004 - 11:31 pm
In January I ceased work to concentrate on renovating houses as a means of producing an income. I have since completed my first property which is currently for sale and have fallen into that gaping cashflow trap. ie…waiting for this house to sell and settle before I can move on another one which will have to settle before I can commence work on it.
This of course also brings about the inevitable situation whereby a new mortgage will be difficult to obtain as I now no longer have a wage and lending institutions will question the serviceability aspect of any new borrowings on just my wife’s salary.
This is where equity partnerships has been suggested to me.
Does anyone know where to research such things..ie a private investor bankrolling the project as a silent partner and then splitting the profit.
I would love to hear your thoughts.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 21, 2004 - 1:53 am
Talk to your solicitor and accountants and mortgage brokers etc Someone with possible clients with money laying around. (Sorry, not me atm). Also relatives, eg one of my clients used his parents property to get a LOC and used that money to get started. Dangerous tho.
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
bigmark
Participant
@bigmark
Join Date: 2004
Post Count: 7
July 21, 2004 - 4:04 am
Thanks Terry, they were avenues I had considered and will now investigate further.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
July 21, 2004 - 4:49 am
Are you sure that you wont be able t get a loan through?
Talk to a good broker like Terry and see what he can do for you before you give up this option.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
TheFinanceMan
Member
@thefinanceman
Join Date: 2003
Post Count: 18
July 22, 2004 - 4:35 am
Hello bigmark,
There are short-term private finance options. I have a business colleague who offers finance for 3-4 months terms at around 15-20% p.a. depending on risk. Usually she prefers 1st mortgages but can look at 2nd mortgages behind your existing lender as long as there is enough equity in your property. Obviously pretty risky if you don’t sell but if you are interested I can give you her details.
Just shoot me an email:
[email protected]