Hello fellow investors,
I just found out 2day that our company has done some restructuring and some of the account managers have been made redundant. (me included – wasn’t thinking of retiring just yet!! [biggrin] )
I want to take up investing full time so I can grab the best deals before the hit the market.
What options do I have to finance my investing without going back to a job?
Once I do some good deals (buy, renovate/develop then sell), then the cash will flow through and finance the next projects. It’s just starting the ball rolling.
Also I was hoping to put a offer down next week on a block of units to renovate and sell, if my finance had been sorted before 2day or the redundancy was next month I think I would have been fine.
If anyone knows what options are out there for me please let me know!!
Thanks
TyYou are going to have trouble obtaining finance if you do not have evidence of income or have a business ABN registered for two years.
Having been unemployed for 3 years I have decided to become a mortgage broker. I think I will struggle for the next 12 to 18 months to sign up any mortgages due to the market , but at least I will have an ABN for two years and I will have the flexibility to invest in property as I will be working for myself.
As I read in a book and have discovered myself if you have $2 million in debt and lose your job but can manage the repayments then no problem.
If you have no loans and lose your job the banks won’t lend you money.Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi, Ty
If I was in your shoes, I would take some time to work through the redundancy and then decide on my next step. Being made redundant is a big shock to anyone.
I have not been made redundancy before, but have met a number of people who have. Many tend to feel a need to immediately do something like start up their own business, citing reasons like ‘since I don’t have a job now, I have the time to do the business that I have always wanted’.
My point is that if you have not been an active real estate investor and have been satisfied with your job all along, being made redundanct is not a good reason to start being one. Is the reason to be a full-time RE investor because of a need to ensure your family’s financial stability?
If you had the planning and desire to run your own business or be a full time RE investor all along, having a paid job is not going to be a deterrence to that goal.
Just make sure you want to go into RE investing full-time because you have been doing that on the side for a long time (thus you would have the capital, skills, knowledge and desire) and know you can (not think you can) survive financially doing it.
Anyway, an initial RE income could take at least a few months before it starts flowing it.
All the best.
Daniel Lee [specs]
Hi Ty
My husband has been made redundant twice, so it is a case of “been there, done that”.
Advice?
Get a good accountant’s advice as to the structure of your payout from your company to make sure you take advantage of the tax benefits in a redundancy payout. Things like the wording and the way the money is paid can make a huge difference to the tax payable.
Investigate any Centrelink benefits you may be entitled to. Even if it is only the low income health card it will help.
Take care how you spend the redundancy money, it is there to support you till you find another job or start to receive income from a business. It may be better to keep making payments rather than pay out any debts.
I hope things work out well for you. Redundancy is a huge shock, although in my husband’s cases it was expected and the actual redundancy was almost a relief after living under its shadow.
In both cases my husband went on to bigger and better jobs, so in the end everything worked out for the best, as so often happens.
Cheers
MargLook i hate to contradict anyone on the forum but dont necessarily agree that without an ABN for 2 years you will not get finance.
If you have an ABN for 1 day you can qualify for finance to a level of 95% LVR and also many investment deals are done on lodoc basis.
I financed a $3M Comercial development last week with absolutely no income evidence at all. The Client has some equity and the project was strong.
Having had 20 years in the finance arena i think i have seen most deals come across my desk at some time or another.
I am not saying that every deal can be done but there are many many way sto skin a cat.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Thanks everyone for all the advice.
This is my 1st time been made redundant.
I have to admit i’m not sad or angry however i will miss the people.I’m looking at this as an opportunity and bigger and better things to come.
I do have 1 investment property on the coast and i have always wanted to get into PI since 1999 but never did up until recently.
If i need a job (for the time being), i can go back to the company that i used to work for before this one, if that will help with securing fiance. if i can leave the payout in the bank it can be used as a deposit.
Being around people in business and who are in investing i’ve realised that working for someone at a job swaping time for money is not the way to be free. Plus you can only earn so much swaping time for money and we only have 24hrs in a day.
I’m only 25 and i’m not prepared to give up 40+ years just to get by. I want to be in control of where i’m heading and what i do.
There is always a way and i will find it – hopefully soon!! [biggrin]
Catch you guys latter
Ty
Ty
Good luck with your future employment and am I sorry to hear about your redundancy.
Very remiss of me in my earlier post.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
I am thankful for all the advice i can get.
The redundancy is unfortunate but i see it as
opening up a world of new possibilities.
I keep laughing about it and i’m choosing to take it as a positive.I’m even looking to get into a job in or associated with the property investing industry. It will excel my learning and i will be around like minded people.
This next week i’m working out what i’m going to do to get to my end goal (full time investing)
Thanks again and if anyone has got any more advice it would be great!!
Ty
I must agree that finance is not necessarily a problem without an ABN AND in our case a part time work history of only 15 months in Australia. We had about $60k in savings which we brought with us from overseas and as far as the bank knows that’s it.
I was very sceptical about getting finance and only went through the motions with the bank to keep the peace at home. Imagine my surprise that I would not have to work for two years nor give up my part-time work for something more serious in order to borrow.
If you don’t ask you don’t get. We are in business two years ahead of schedule!
One word of warning about being suddenly unemployed with a lump sum in your pocket. I’ve seen many a fortune frittered away by people used to a steady income and unused to large cash lumps. While you can make a furtune in real estate you can also lose your shirt.
We are experienced in property but because we don’t know the Victorian market as well as our home one we opted to start very small and will slowly build from that.
All the best.
Fatboy
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