Hi there,
I've just been listening to an Alan Gowgill audio where he speaks of private money lenders being so much better than banks or hard money lenders.
My question is: Has anyone used this strategy to invest here in Aus and where do you find private money lenders yourself?
I read about the people who in a lease option situation missd a couple of payments and their rights seemed no better than to a bank regarding safety in ownership of the house so I'm investigating low pressure situations where I can just repay the private money lender with 12% interest upon the sale of a rehabbed house.
Thanks for any replies.
HI Rebecca
I'm not sure what you're looking for finance but we use an assortment of lenders – including private money. Solicitors often have rosters of clients with money to lend around the rates you mentioned.
Try the classifieds of Sat paper (Herald in NSW) There's usually a list of them in there.
Regards
I also know a few but in Adelaide.
If you miss a few repayments with the private money lenders, depending how the deal is structured, you could also go down the path of losing the property just like in lease options.
There are plenty of private lenders around, but they charge high rates with high fees and they are ruthless when you default. Someone I know was evicted yesterday by a private lender as he defaulted on his loan.
I have a few clients who borrow money from friendly family members at around 10-15% and then use this as deposits ofr property. Sounds high, but when you work out the blended rate it is not too bad.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
We have out lending company that offers both full doc and lodoc first and second mortgages if the property is in Qld.
Richard Taylor | Australia's leading private lender
Thanks so much for these replies.
I've already learned a lot from these forums – very grateful.
There has to be a way to create a 'Vieage' – the French word for Life instead of a Mort gage, mort being the French word for death!
Now, back to adding up my monthly receipts!
Rebecca
Thanks again.
HI, I AM INTERESTED IN TRYING TO FIND A PRIVATE LENDER OR INVESTOR CAN ANYONE HELP
Which State is the security property in ?
Richard Taylor | Australia's leading private lender
rebecca22 wrote:"……….where I can just repay the private money lender with 12% interest upon the sale of a rehabbed house……"
if you can get investors to do a deal like this please let me know.
i can only share my experience with private lending. yes it is fantastic (the people i deal with have the cash, want to invest in property but submit to the fact it takes some work to generate substantial income from (like to live off)). i offer 10% per annum, paid quarterly for a 36 month term. then at expiry i then give a 9% flat bonus (sometimes, obviously the investor gets paid back his bonus a little earlier…….but as a guide only it equates to approx 13% per annum). these people are not silly but they are smart enough to realise that they aint going to get that return on 'idle' cash sitting in their equity/bank account/business cash flow.
all i do is ask EVERYONE that i meet………."would you like to earn a minimum of 13% over 36 months for only an invesment of $50,000.00? good luckmarten hilberts wrote:rebecca22 wrote:"……….where I can just repay the private money lender with 12% interest upon the sale of a rehabbed house……"
if you can get investors to do a deal like this please let me know.
i can only share my experience with private lending. yes it is fantastic (the people i deal with have the cash, want to invest in property but submit to the fact it takes some work to generate substantial income from (like to live off)). i offer 10% per annum, paid quarterly for a 36 month term. then at expiry i then give a 9% flat bonus (sometimes, obviously the investor gets paid back his bonus a little earlier…….but as a guide only it equates to approx 13% per annum). these people are not silly but they are smart enough to realise that they aint going to get that return on 'idle' cash sitting in their equity/bank account/business cash flow.
all i do is ask EVERYONE that i meet………."would you like to earn a minimum of 13% over 36 months for only an invesment of $50,000.00? good luckkenkoh2000 wrote:marten hilberts wrote:rebecca22 wrote:"……….where I can just repay the private money lender with 12% interest upon the sale of a rehabbed house……"
if you can get investors to do a deal like this please let me know.
i can only share my experience with private lending. yes it is fantastic (the people i deal with have the cash, want to invest in property but submit to the fact it takes some work to generate substantial income from (like to live off)). i offer 10% per annum, paid quarterly for a 36 month term. then at expiry i then give a 9% flat bonus (sometimes, obviously the investor gets paid back his bonus a little earlier…….but as a guide only it equates to approx 13% per annum). these people are not silly but they are smart enough to realise that they aint going to get that return on 'idle' cash sitting in their equity/bank account/business cash flow.
all i do is ask EVERYONE that i meet………."would you like to earn a minimum of 13% over 36 months for only an invesment of $50,000.00? good luck
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