All Topics / Finance / Creative finance help needed!

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of New_DeveloperNew_Developer
    Member
    @new_developer
    Join Date: 2004
    Post Count: 3
    November 17, 2004 - 2:47 am

    Hi All,

    Long time reader, first time poster [biggrin]

    I am just working on my first property on sell deal at the moment and have hit a bit of a wall with finacing. I have a contract to purchase 1.3ha of residential land which settles mid Dec (3 month settlement) for $225,000 which I have now have on sold to a developer for $308,000 with settlement in the first week of January.

    I tried to get the settlement date of the original purchased moved but the sellers are not willing to budge and neither are the buyers. I went to my Broker but he tells me he’s getting the same response from all the banks: Lack of servicability of the loan and the deposit (as we want to borrow $233,000 – principle + stamp duty and are pretty close to the 40% servicability level already, even though it’s only 3 weeks!)

    It’s a good profit deal and I don’t want to lose it – any ideas?? [confused2]

    Thanks

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    November 17, 2004 - 3:05 am

    Perhaps you could find a cashed up investor who can lend you the money for a share of the profit?

    I can’t give any specific lending advice without more figures.

    All the best,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Todays Hot Rate
    ***3 year fixed – 6.49%***

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    November 17, 2004 - 3:36 am

    Short term finance via solicitors funds may be an option.

    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Ph:1800 820 500
    VICTORIA

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of New_DeveloperNew_Developer
    Member
    @new_developer
    Join Date: 2004
    Post Count: 3
    November 17, 2004 - 7:12 am

    Thanks Simon & Steven,

    Steven – Have you tried using or know someone who has tried to use solicitor funds? I’m just wondering how sucessful they may have been with this course of funding?

    Is there anyone who knows of a cashed up investor wanting to make some short term gain?? [blush2] (Always worth the ask) [happy2]

    Cheers

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 17, 2004 - 7:22 am

    Hi

    So you basically need more 100%+ finance? What happens if the developer can’t settle?

    Your best bet is probably to just delay settlement. You have about 3 weeks from when you need to settle until, the developer needs to settle. If you don’t settle on the required date, the vendor usually gives you a few days, then they issue you with a notice to complete. You then have 14 days in which you must settle. So if you can drag out the vendor initially, you may be able to stetch it all the way to when you settle with the developer. But if the developer does the same thing to you, you may be stuffed.

    What about offering $$$ to the vendor to settle later, and/or the developer to settle early?

    I have access to private lenders, but they are reluctant to lend for land at high LVRs, and you would be looking at 6-10% per month interest.

    Terryw
    Discover Home Loans
    Mortgage Broker
    [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

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    November 17, 2004 - 8:48 am

    Hi ND,
    I can give you the contact details for solicitor funds on VIC property,
    I also have access to short term lenders 30 – 90 days, LVR above 80% may pose a problem, as Terry mentioned the rates are not pretty, If you pm/e-mail all the details, State, p/code etc etc, I may be able to help.

    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Ph:1800 820 500
    VICTORIA

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 18, 2004 - 2:43 pm

    If the security is in Qld I might be interested to help.

    Let us know?

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of New_DeveloperNew_Developer
    Member
    @new_developer
    Join Date: 2004
    Post Count: 3
    November 19, 2004 - 12:38 am

    Thanks for the ideas guys [biggrin]

    TerryW – I tried doing that early on but I think the seller got wind of what i had done and refuses to budge on the settlement date – even though I offered them $$$

    I’ll PM/email the details to Mobile MM and Qlds007 to see how it goes – I’ll keep you all posted [cool3]

    Cheers

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