Multiple Trust Borrowing

Hi Everyone.  This is my first time on here and I am very interested to read other peoples insight into the Property Investing game.  I myself have recently purchased my second investment property and am interested in peoples opinions on structuring.

At present i have one IP in my own name and one in a trust.

I have had alot of advice given to me on the correct structure i should be using to build my portfolio.  At present i have:-

– I am the Director of a Company which is trustee for a Discressionsry trust
– The trust has an interest in a number of business's which produces a profit of around $50k pa
– I currently have used my personal income to show servicablility of the current IP loan in the trust
– I am also guarantor for the above loan

My intention is to purchase further properties in the trust

After approx. my 4th read through Steve Mckinghts 130 properties (probably one of the most motivating pieces of literature i have ever read) there is one page that intrigues me.  Pg 174 in which he mentions using multiple trusts to purchase properties.

My interpretation of this is that my maximum borrowing ability is governed by my personal income.  From this lenders will lend $X based on my income and subsequently loans to the trust are limited by my income.  By having a second trust this would now allow me to use my income to borrow $X from a different lender in the new trust name.  Borrowing in the first trust will not count towards my borrowing ability in the second trust

Any thoughts on this as a strategy?

Any help, insight or advice would be appreciated