I am currently unemployed (just this month). I have a bit of cash behind me – one +IP and a nice yacht that I can sell if I need cash.
I am wondering if anyone can tell me how I can go about funding new property deals without a “regular ” income to satisfy the banks. Or am I limiting myself here? I would rather go full time investing, but do I need a job to borrow?
AlbyYou could go for No Doc loans, asset lends, where no income is required. For the main ones, all you need is an ABN for one day. max LVR is 65% for these.
Terryw
Discover Home Loans
Mortgage Broker
[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
Terry
I am in a similar situation to Alby, although have been working for myself as an investor since leaving work for a little longer than Alby. I never thought of needing an ABN which I suppose is logical when I think about it. Does having an ABN make it easy to get Low Doc Loans or Asset Lends? Working for myself has caused my current mortgage broker to say I can’t borrow any more until I have a couple of years income to show. I’m still trying to work my way around this. Also, can you please explain what you mean by Asset Lend.
Many thanks
CalderCalder
Having an ABN certainly makes things easier, but most lenders will want you to prove you have been self employed for 2 years or more and usually take the date the ABN was registered as evidence.
However, No Docs only require the person hold an ABN for one day.
Terryw
Discover Home Loans
Mortgage Broker
[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
Thanks Terry,
I actually had an ABN about two years ago for a consultancy I had but I have not renewed this whilst I was salary employed – more is the pity. I have already considered registering an ABN again , so thanks for that tip.
I suppose the alternative is to pick up work again and keep at this until I have some cred under under the new ABN.
I think that having to put down 35% on a deal sort of kills the return on money down scenario .. although I suppose it will be ok for short term capital gains deals.
Food for thought – I appreciate you imputs.
alby
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