Is there any special type of loans designed for flipping properties. I've been doing some numbers and one of the fees i could do without is the early mortgage discharge charges. Just wondering if any certain banks discount the discharge fee or abloish it altogether?
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
If you're going to get into flipping I'm wondering why you would bother buying the property, considering all the finance and closing costs involved. Why not control the property with an Option and then flip (sell/assign) the Option? We've done this quite a bit and it works well.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Most vendors have no idea what a option is to begin with and then begin to run a mile when you try to get the agent (who also might never have done it) to explain it to them. I have had plenty look at me and think I'm trying to pull one over them.
How about just security substituting the loan. Although restricting you to a similar amount, you can save on LMI costs if you choose the right bank ie if you already have 95% loan and paid LMI once, If you paid out and canceled the loan and set up a new loan for a new property you would incur LMI again, so instead swapping the securities and LMI would transfer at a reduced cost to the new property ie they might discount you some of the LMI instead of charging you the full lot, depending on how fast your flip the property months years etc reduce from 70% – 50 % etc.
Most vendors have no idea what a option is to begin with and then begin to run a mile when you try to get the agent (who also might never have done it) to explain it to them. I have had plenty look at me and think I'm trying to pull one over them.
How about just security substituting the loan. Although restricting you to a similar amount, you can save on LMI costs if you choose the right bank ie if you already have 95% loan and paid LMI once, If you paid out and canceled the loan and set up a new loan for a new property you would incur LMI again, so instead swapping the securities and LMI would transfer at a reduced cost to the new property ie they might discount you some of the LMI instead of charging you the full lot, depending on how fast your flip the property months years etc reduce from 70% – 50 % etc.
Mortgage exit fees have been abolished under the NCCP Act or regulations. You just have the discharge of mortgage fee now – and break costs if the loan is fixed
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
I'm looking to do this with my girlfriend and all my properties are in my name and my bank won't let me use the equity if I'm buying a property with someone else''s name on the title. Yeah all the properties i find and do some numbers for come back at alright profit levels(although I'm aware there will always be hidden costs or things go wrong) but the discharge mortgage fee i could do without. Might have to save up a 20% depoist to avoid LMI to make the deals more appealing.
Thanks Tony
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
I'm looking to do this with my girlfriend and all my properties are in my name and my bank won't let me use the equity if I'm buying a property with someone else''s name on the title. Yeah all the properties i find and do some numbers for come back at alright profit levels(although I'm aware there will always be hidden costs or things go wrong) but the discharge mortgage fee i could do without. Might have to save up a 20% depoist to avoid LMI to make the deals more appealing.
Thanks Tony
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
I'm looking to do this with my girlfriend and all my properties are in my name and my bank won't let me use the equity if I'm buying a property with someone else''s name on the title. Yeah all the properties i find and do some numbers for come back at alright profit levels(although I'm aware there will always be hidden costs or things go wrong) but the discharge mortgage fee i could do without. Might have to save up a 20% depoist to avoid LMI to make the deals more appealing.
Thanks Tony
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
I'm looking to do this with my girlfriend and all my properties are in my name and my bank won't let me use the equity if I'm buying a property with someone else''s name on the title. Yeah all the properties i find and do some numbers for come back at alright profit levels(although I'm aware there will always be hidden costs or things go wrong) but the discharge mortgage fee i could do without. Might have to save up a 20% depoist to avoid LMI to make the deals more appealing.
Thanks Tony
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
I'm looking to do this with my girlfriend and all my properties are in my name and my bank won't let me use the equity if I'm buying a property with someone else''s name on the title. Yeah all the properties i find and do some numbers for come back at alright profit levels(although I'm aware there will always be hidden costs or things go wrong) but the discharge mortgage fee i could do without. Might have to save up a 20% depoist to avoid LMI to make the deals more appealing.
Thanks Tony
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
^silly computers
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Hi Wilko
Options are quite flexible as you can insert agreed conditions. Like you, initially we found the vendors had no idea and just said no.
What we needed to do was get the Agent on-side. We did this by ensuring the Agent saw in the Option paperwork that they'd get paid their commission. Worked a treat
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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