Hi,
After months of searching I managed to locate a really good subdivison opportunity.
A developer ran out of cash and wanted to quickly dump 5 smaller sites he had.
One of them them passed in at auction and I managed to put an offer in at $245,000
subject to finance.Its a 1360sqm block with double street access and an old house in poor condition on the
front block. The house is structurally ok and could be renovated subdivided of and sold
for the mid to high 200s leaving a free 800sqm back block with street access.Im self empolyed dont put in BAS and have very low figures on my tax returns.
I went through all the motions of getting a low doc loan based on.
20/80 LVR and mortgage insurance.The finance was due on friday and the lender wont do it because the mortage insurer wont
take the house as security because it is in poor condition.The only option I have left is to come up with a 40% deposit ($98000) with in two weeks.
I have $70,000 in cash.
Friends and family dont want to get involved because they dont like taking risks.
I have an appartment in Brisbane worth $290,000 it has a mortgage of $185,000 with commbank.
Commbank wont extend the mortgage becuase I dont have Bas statements.My only option left is to get some sharky short term lender to take a second mortgage of $30,000 on my Brisbane
appartment at some horrible rate like 66% interest. I will probably have to do it because I dont want to
let the deal go. Another deal this good wont be around any time soon.I thought about making a deal with the vendor but I get the impression he doesn't want to be mucked around
and would just sell to somebody else.If anybody knows of a way that I can somehow get a short term loan of $30,000 please let me know.
Thanks,
Mark.
I have had to raise funds short term recently to get a property deal across the line.
Step 1. Get a personal loan which is essentially a revolving credit facility.These can be available for as low as around 9% from building societies. (I got mine from the bank that I am employed by at 9% under a special staff deal). Draw down on the personal loan.
Step 2. Get a Credit Card from Citibank which allows a balance transfer from a personal loan at 1.9% for the first 12 months. You have to push Citibank to make sure you end up with the right product as they will keep trying to divert you to other cards. I am in a different financial situation to you but Citibank approved a $18,500 credit card limit and allowed me to do a balance transfer of $18,000 at 1.9% from the personal loan.
I cant get credit cards or personal loans because I have very low figures on my tax returns. Im self employed and I dont put in BAS.
Ideas –
- Advertise for a money partner in gum tree web site or newspaper..
- Advertise for a joint venture Partner
- Try Igrin web site but $30,000 is too high as smaller loans are usually granted.
- Ask vender if they can provide you with $30,000 Vendor loan. It is worth asking vendor as they may only need enough money to get out of trouble and may be willing to help you .
- This one takes risk tolerance. You get a long settlement like 12 months on the condition you can subdivide and get an approved DA and then on sell the back property at the time of settlement with a DA and make a profit. See this months API magazine it has an article about it.
- Maybe the vendor would go into a joint venture with you.
You would have trouble with a no doc loan also as ato cross checks what you state to bank you earn with what you report to ato you earn.
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