G’day all,
Looking for some advise.[blink]
I’m researching extensivly in to Peter Spann’s Stratergy of Buy, Renovate, Hold, Revalue, Drawdown and Repeat.
I’m stuck on the whole revalue and drawdown/refinance part. I hear that the lenders will value the property below market value to cover themselves, however that is not productive to following the stratergy. Also I can’t see that a financier will accept a valuation from one of their valuers which I would pay for.
Am I right in thinking that I need to pay for the valuation and then use that to refiniance with other banks and get them to agree to lend to the LVR based on my valuation? Is this the way it would work, has anyone done something like this before?
If I’m right, would this mean that the initial loan while renovating would need very low exit fees to enable the refiniance? What other pit falls are there with this process?[biggrin]
Cheers,
AndyWhat you need to consider with valuations is that they generally are valuing based on what they presume you can sell that property for with in 30 days if required and they will look at what has been sold in that area over the last 12 months.
As far as valutions go we conduct pre application valuations for our clients prior to submitting an application so we know what price we are working with.
Some times it pays to do more than 1 valaution to get the best result.The valuation remains current for 3 months and we can then use that valuation for the lender we submit the deal through.
It is normally a cheaper option than arranging valuations yourself as most banks will always want order there own valution anywayPaul Meese
Onyx Finance
[email protected]
0412 850 820
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