All Topics / Help Needed! / Finance dilema! Contract signed no finance.

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of luke_usaluke_usa
    Member
    @luke_usa
    Join Date: 2009
    Post Count: 2
    November 30, 2009 - 11:09 am

    I am a relatively young property investor, who to date, has not had any issues obtaining finance on property deals. I recently sold two properties so am quite cashed up, but little did I realise this would effect my borrowing power. The properties I sold earned great returns and had little debt, so now without this additional income the bank says my debt to earnings ratio is too high. All of my debt is through the one institution and I think they are concerned about their level of exposure even though I have proven consistent savings, and all but one property is cash flow positive, and the property I am looking to buy is also very profitable.

    It is a $660k purchase. I was looking to provide 20% deposit plus legals, but can provide approx 30% or a little more if required.

    This is a great opportunity that I dont want to loose.

    Does anyone have any ideas?

    Time running out.

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574
    November 30, 2009 - 11:25 am

    Find another bank that will lend you the money.

    Please expand on your situation so we can understand:
    1. What is your gross salary?
    2. how much cash do you currently have?
    3. What debts do you owe?
    4. What is the value of the property you own?
    5. What return is your property providing you?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 30, 2009 - 11:29 am

    Hi Luke

    Hate to say it is becoming more of an issue by the day as lenders tighten up their criteria.

    Few other questions I would ask in addition to those raised by Matt above but certainly those will help give you a fair assessment.

    Other issue i can see is the fact that you need the finance quickly as very lenders are acting that quickly in the present climate especially coming upto Christmas.

    Richard Taylor | Australia's leading private lender

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574
    November 30, 2009 - 11:47 am

    One further question, are you in USA, Australia or elsewhere?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 30, 2009 - 12:07 pm

    I assumed Oz despite the handle name as in the US we could do the deal as a Nodoc deal.

    Richard Taylor | Australia's leading private lender

    Profile photo of cubman09cubman09
    Participant
    @cubman09
    Join Date: 2009
    Post Count: 37
    November 30, 2009 - 12:08 pm

    Maybe a lender can help instead of a bank.

    Andy

    Profile photo of luke_usaluke_usa
    Member
    @luke_usa
    Join Date: 2009
    Post Count: 2
    December 2, 2009 - 9:55 am

    Hi all

    Thanks for the input. The next bank I went to is indicating it wont be an issue, nor should it have been in the first place… go figure… their loss.

    Luke

Viewing 7 posts - 1 through 7 (of 7 total)

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