Has anyone had any experience with starting their investing by having a lump sum of money and approaching a financial entity to get a loan for the investment rather than relying on personal income as the basis of capacity to pay? I am looking to find out how open financial institutions are to this compared with the more traditional income related approach.
Scott C
Email MeHi Scott_C
have you been talking to some of the banks I deal with?????
most of my deals are done this way.
I work out the 12 interest component for the loan and then deposit that into a term deposit and let them draw from that.
They then don’t look at serviceablity.
Just put in 2 loans today for two syndicates for total 9 million and currently have a green light.
Just don’t do it to often or you may start to trim my feathershere to help
That’s hectic. Youd have to start somewhere though and eventually get to that stage where you do have a lump amount of cash.
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
Scott
The banks seems to have a couple of lending “tiers”. First is serviceability i.e. your ability to repay/lending on income. This is the traditional way or lending and the bank’s first “port of call” esp. for new investors.
Second there is asset lends – where they lend against the value of the asset. The Low Doc/No Doc loans around today live in this area. Banks are less likely if you have no/little track record with them so you might have to try alternate lenders/brokers who don’t seem to have too much trouble.
Once you exhaust the above, there are still ways however it becomes more complicated and creative.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.My thanks to all. I appreciate your advice. So far we have had 2 properties one of which we sold as it was originally our home and too much of a drain to rent out. The other is floating just below the water line but will get better.
We have a decent lump sum that we want to convert into as many properties as we can so your advice is valuable to us.
Scott C
Email MeScott
You really shouldnt have much problem in obtaining finance if you have a siseable deposit.
Most lodoc and nodoc deals are done at standard housing rates.
Feel free to email me if you need a few suggestions on a particular scenario.
Cheers Richard
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http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
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