Hi,
I had a family business partnership go bad about 6 years ago and was left with a huge debt. I went on my way and started a business again for myself with this debt and could not clear it, so i went bankrupt 2 years ago and lost my house and my dignity. Over this time i have created new habits of saving 10% of everything i earn no matter what. I now work full time for a company and still run a part time business on the side. I have also been to seminars, info nights and reading books on property and would love the opportunity to buy an investment property, but have been told that cant happen until about 6 years i first went bankrupt and then i would need at least a $100,000 to get started. Can anyone help with any other information? Thanks NGThe banks don’t have policies re how long to wait after you are discharged to get finance.
You simply need to convince them all is in the past and you are now in a strong position. You won’t get mortgage insurance so max 80%. It will be easier if you work PAYG rather than start a new business. If the banks don’t go with it try Liberty Financial or Pepper Home Loans (these are the two of the bigger non-conforming lenders).
Hi NG
Another alternative you may consider is buying a property with vendor finance. In this case you will normally pay a premium price as against the premium interest rate you would pay with the two non-conforming lenders mentioned above. However vendor financiers usually have a smaller deposit requirement.
Quite a lot of vendor finance properties are listed at:
http://www.renttoownhome.com.au
I have no interest in the site, other than advertising there.Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Partnerships are extremely dangerous.
If only NC had some advice when setting up the second business, this could have been quarantined from the first.
For the finance it will be hard to qualify for many years. You could get around this by using a family member or a friend to help you out.
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
Hi there – I am very new at this and have joined the site as I am looking for info – however my situation may be of help to you or it may not……but I have a property that I need to either sell (preferable) or go into a joint venture – it is a 1/2 renovated house in Townsville in a great location – with the option to run a business from. This has come about due to a marriage breakup. I am happy to look @ vendor finance (not that I know much about it and would need to get all the info sorted) – But you never know, – one persons stumbling block can be another's stepping stone. Contact me if this of interest to you. – wonderwoman
Hi Wonderwoman
Prob best to contact Paul Dobson above – he's the expert on vendor finance.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi,
Having a discharged bankruptcy is not the end of the world; as long as you play the game right and find the right lender that fit’s their “books”
Generally speaking;
1. If you have good conduct for 18 moth + discharged bankruptcy for more then 3 years + stable job (2 years full time +…more the better) + one stable place of residence- then some of the major banks will consider + LMI will also do the loan at 90% LVR- the rate will be the same… no rate loading
—> Option 1 does sound like a perfect solution, but it’s still not easy to “fit” their books….from your post; you mentioned you have a part time business — so hence a declared ABN on your credit file….this the major banks + LMI WILL NOT like….it’s a “warning lights” that another business bankruptcy is possible.
2. This is where the tier 2 lenders comes in ( smaller lenders, credit union) – there are plenty that will even do 1 day Discharged bankruptcy- of course it all comes at a higher rate + LVR is much lower.
There’s no straight answers when it comes to finance- it’s all case by case….
It’s good to work out what you need ASAP so you can work towards that goal.Regards
MichaelNCZC wrote:Hi,
I had a family business partnership go bad about 6 years ago and was left with a huge debt. I went on my way and started a business again for myself with this debt and could not clear it, so i went bankrupt 2 years ago and lost my house and my dignity. Over this time i have created new habits of saving 10% of everything i earn no matter what. I now work full time for a company and still run a part time business on the side. I have also been to seminars, info nights and reading books on property and would love the opportunity to buy an investment property, but have been told that cant happen until about 6 years i first went bankrupt and then i would need at least a $100,000 to get started. Can anyone help with any other information? Thanks NGMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Wonderwoman
I noticed that was your first post here. Welcome to the forum and I hope you enjoy your time here.
The situation you have with your property in Townsville may be helped by what we call our negative2positive process. In short, if you have the time, you sell the property with vendor finance with the aim of getting a premium price and generating positive monthly cash flow. More detailed information is available at http://www.negative2positive.com.au
You'll notice above I mention, "if you have the time". If you can get the money you need from the property by selling it traditionally now, then that's the way I'd normally go, i.e. it gets me all my money now. If the traditional sale path won't get me the money I need and I have some time to trade off, I'll look at selling with vendor finance.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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