Hey guys,
just curious to know about alternative sources of finance, reading up late tonight about how real estate tycoons and so on dont usually wait till they have enough equity in their investments to purchase continually, and usually buy things such as bonds, and etc..
im just curious to know what other forms of finance are available out there. for example, the bank is only willing to lend me 260,000, but what if i want 600,000 maybe to do a small project renovation..
keep in mind im only a 19 yr old student…
Hate to say i think your book had not kept up with the GFC times.
In this day and age obtaining Prime finance is hard enough so anything out of the box has certainly gone bythe wayside.
Richard Taylor | Australia's leading private lender
Maybe you were reading some old american stuff?
Here it all comes down to LVR. No one is going to lend you more than a property is worth. Even private lenders are looking at around 70% LVR.
However, you may be able to convince a rich relative to loan you some money – like one of my clients.
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
it was american but none the less…
i dunno.. just wanted something like a loan for another 250K with compounded interest. or something. very out of the ordinary but i dunno lol..
the more money you invest, the more profit you can make..
Regretfully as the saying goes "Tell him he's dreaming".
Dont want to appear rude but it does not exist.
Richard Taylor | Australia's leading private lender
Ah, the old days.
In the past, before we were in the mess that we find ourselves today, there were a very small amount of people that could get access to the kind of money that you were talking about. However, with things the way they, it just does not exist I'm afraid. Even those that used to have it can't get it any more.
Keep in mind however:
wealthyjvd wrote:the more money you invest, the more profit you can make..Yes, this is true… however when you're investing money that you didn't have in the first place, your risk is also a lot higher. In fact, that's how the world got into the mess that we're in at the moment!
You can get private finance, but you will pay through the nose. I know of a woman who is lending from people who have spare case at the rate of 50% pa.
Those sorts of deals are done through a solicitor.
Cheers
K
Very True Linar but not to 200% of the purchase price.
Most private loans (and i actually do them from my Super Fund) are done at max 70% LVR.
Richard Taylor | Australia's leading private lender
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