65% loan

[ugotadollar4me]

Absolutely hilarious.... Which bank will do the deal? Interesting you have so much knowledge on negotiating and valueing commercial properties but have no idea on the criteria used by banks to assess commercial deals...

Why bother settling on the property at all? Just sign and or nominee, and onsell the property prior to settlement. Even if you have to pay stamp duty there's loads of profit there.....
Interesting question as to who is held liable later on if the exeutor is found to have not acted in the best interest of the benificiaries in offloading the property way under market val.

Hi Tobe, That is also what I am trying to work out, so far I have 2 possibilities.
I know plenty about how the banks work but I am trying to find new ways to do things. Why put up your own cash when there may still be a bank out there that can do this deal and other deals.
mmm you can run into problems signing and or nominee but I have done it before.
yep but why buy it and dump it and only make $800k when I could try and find a bank to do the deal and then I buy and hold it and reap $1.2m and then add further value with a reno.
then I should double that $800k depending on how I do the reno.
I am trying to get past the stage where I let these deals go or on sell them when I could take 100% by holding them.

 

[ugotadollar4me]

Stamp duty is paid on the valuation, regardless of the purchase price.

My bulls up there, for some reason I was thinking land tax

 

[Token Funder]

No it hasn't hit the open market yet, if it went to the open market $3.2m will be what it should acheive, the people selling it don't have a clue on price and I am not about to tell them either.


Well it doesn't have to be that valuer it can be another valuer from what ever bank, but the thing is what bank will do this deal?????

bank values at $3.2m purchase price is $2m I need $2m from the bank I can't put any of my money in.
Now some people will say thats 100% finance because of the purchase price
but the purchase price really has nothing to do with it. the true value of $3.2m is what it is worth so if the bank takes that into consideration then it is really only approx 65%
SO WHICH BANK WILL DO IT?????????

I'll make it easy for you. There is *very* little chance a bank will touch it on the terms you want.

A bank will lend on the val or contract price, whichever is the lower. Every excited buyer has a story for the bank about how they are paying under market and it's *really* worth much, much more than that.

We've heard them all.

 

[ugotadollar4me]

I'll make it easy for you. There is *very* little chance a bank will touch it on the terms you want.

A bank will lend on the val or contract price, whichever is the lower. Every excited buyer has a story for the bank about how they are paying under market and it's *really* worth much, much more than that.

We've heard them all.

Nothing is impossible, If you don't try you will never know.

Lucky I don't get excited when trying to buy a property, I only get excited after the deal is completed.
If you seen some of the deals I have done you would not judge me, My mates started to call me a tinny .... then they started to call me a lucky ....
now they say how the f... do you always do it, I say easy.

 

[tobe]

Im not a commercial broker, but I know its always been more dificult to finance commercial properties than residential. A lot more attention is paid to the income of the property itself. In the current market its even harder.
As this one is on a low yeild, its going to be more dificult to get approval. I realise you have said you could service the mortgage yourself, (2mil at 8% over 15 yrs is just shy of $20k per month) you are semi retired, and these sort of deals come across your desk everyday. If thats the case, why not onsell this one and have some cash for the next one to keep, or do some research outside of this forum on commercial finance so you can verify what you have heard here?
I applaud you wanting to think outside of the box, and leap ahead, and not taking no for an answer etc by the way. That is exactly the reason I am on this forum. Its just in this case, from the details you've given, its hard to see how the deal can be done without changing some of the factors.

 

[ugotadollar4me]

Im not a commercial broker, but I know its always been more dificult to finance commercial properties than residential. A lot more attention is paid to the income of the property itself. In the current market its even harder.
As this one is on a low yeild, its going to be more dificult to get approval. I realise you have said you could service the mortgage yourself, (2mil at 8% over 15 yrs is just shy of $20k per month) you are semi retired, and these sort of deals come across your desk everyday. If thats the case, why not onsell this one and have some cash for the next one to keep, or do some research outside of this forum on commercial finance so you can verify what you have heard here?
I applaud you wanting to think outside of the box, and leap ahead, and not taking no for an answer etc by the way. That is exactly the reason I am on this forum. Its just in this case, from the details you've given, its hard to see how the deal can be done without changing some of the factors.

Thanks Tobe.
Yes possible to onsell but 2 problems, 1, the persons will not do a delayed settlement. and 2, this is what I am trying to avoid, It is now time to start buying as many as possible and holding them all, Yep I will look at all avenues and this deal may or may not get away, and if it gets away its no biggy there is always another one that will be waiting, but then I face exactly the same problem, and this problem will not go away until I find a bank that will take my deals on, and there will be a bank that will do it, I have no dealt I will find one, midget and pea might not think so, but there is always a solution to fixing everything.
when I was 15 I came accross a problem, so I took this item to a qualified person and after 1 week they gave me back the problem in peices and said we can not fix it, did it work before, I said yes, they said well thats impossible. I went away and thought well now I have something worth nothing what do I do, then a mate said if it worked before it will work again, so he gave me a list of things I needed and off I went, when I came back he fixed this problem took 2 hours and these so called qualified people could not fix it. So there is always a solution to fixing the problem, you just have to think out side the pea, and not listen to what these negative people say or think.