I am new to the Investing game and have heard that many Investors maximize there options by gaining access to a Line fo credit to by Foreclosures from the county court house. Does anyone know of Banks/Financial Institutuions that offer lines of credit to Investors based on credit?
PatW
ANZ and St georges bank offer the best LOC at the moment. but u need to take care There can be a very good thing but they can also so burn u. u need to speak to a morgauge broker to find out all the details i spoke to MortgageHunter in the forum and he gaave me lots of info.
Hi Pat,
In case you are confused by some answers you may get – this forum is mainly Australian based, not US.
Regards,
Shushar“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
Hi Pat
The way it works is that investors establish a line of credit secured against another property(s) which they then use to pay cash for properties they find. This gives them an advantage when negotiating.
Then, if they are keeping the property, they will find finance and pay this back into the line of credit. Or, if they bought for short term gains, they pay the sale monies into the line of credit. In both cases, they then have their funds available again to pay cash on the next property.
We do lines of credit as one of the options with our loans. It is important to get the structure of the loan correct to minimise costs and maximise profits. As Mad-Cat mentioned, some people have gone backwards with a 100% line of credit because their finances were not structured correctly.
Margaret WIlson
[email protected]Hi pwatkins,
The US is totally different to Australia. We do not use the term foreclosure for one.
A Line Of Credit is simply a loan type. I still do not see any benefit in using the more expensive Line Of Credit when you can achieve the same thing with a cheaper interest only loan and an offset account or an all-in-one loan. When the interest only period ends, you either extend it or go elsewhere.
Anyway, you basically get approved up to a limit and can buy any suitable security. In your case, it would be foreclosed properties.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auComments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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