All Topics / Finance / Finance for Property Flipping

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of fishfish
    Participant
    @slipperyfish
    Join Date: 2015
    Post Count: 13
    May 18, 2017 - 11:27 am

    Hi Everyone,

    My wife and I have been flipping properties for over a decade now as a sideline to our regular income. We have operated under an bank overdraft system which has been great for the small scale operation we have been running.

    However we have since sold the property that was the collateral for this overdraft and moved it to another that we own, but we are looking to now dabble in some higher priced property markets and the current overdraft is not adequate for our needs.

    Just wondering, is there another finance option other than overdraft that would suit this purpose? Our regular income is coming to an end and we are looking at this option as a means of income, at least for the next year or two.

    Thanks in advance for any thoughts or advice.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 18, 2017 - 12:34 pm

    This sort of will be hard to find unless you have a property to secure it against. banks may lend under commercial funding using the reno proeprty as security but it would generally be costly.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of fishfish
    Participant
    @slipperyfish
    Join Date: 2015
    Post Count: 13
    May 18, 2017 - 1:58 pm

    Thanks for the reply Terryw.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 18, 2017 - 2:19 pm

    We do a lot of this type of business for property developers and flippers and is done thru our Private lending arm.

    Settled one yesterday for a forum member who only needs the funds for 60 days when their reno will be complete.

    Usually max lvr on the property security is circa 70-75% lvr so you might have to use your O/d for the balance and reno costs.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of fishfish
    Participant
    @slipperyfish
    Join Date: 2015
    Post Count: 13
    May 18, 2017 - 3:12 pm

    Richard I take it that this is a short term loan and the LVR is on the property for renovation? leaving the PPOR as collateral for the O/D?

    Obviously the interest rate on this kind of loan would be markedly higher?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 18, 2017 - 3:16 pm

    Yes all of our loans are no more than 12 months using the purchased property as security.

    Our rates vary between 12-18% on 1st Mortgages dependant on the location of the security etc.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 6 posts - 1 through 6 (of 6 total)

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