Mark
Can I please point you in the direction of this story andthis thread.
Your comments about mortgage brokers as a whole are offensive, but are not litigation bait.
Naming a person is.
How to Finance Property Investment.
- Thread starter Booboo
- Start date
Can I please point you in the direction of this story andthis thread.
Your comments about mortgage brokers as a whole are offensive, but are not litigation bait.
Naming a person is.
Geoff,
Thank you for the warning.
I do however hold some offence to your post, I have neither slandered or talked unfavorably about the services of anybody or any company. In my line of work I do however receive a great deal of threats to be sued… some of them are actually by people I respect.
As you are aware this is a public forum, people with opinions will post. I have posted an opinion you can disagree and that’s your right. If you have an opposing view I and I’m sure everyone here on the forum would like to hear it.
However as I have stated before if your purpose here on the forum is to Rack Up Posts (12,300 odd) and contribute nothing but scare tactic posts then I do not feel as though your post on this thread is relevant or objective and should be deleted by the moderator.
Mark
Thank you for the warning.
I do however hold some offence to your post, I have neither slandered or talked unfavorably about the services of anybody or any company. In my line of work I do however receive a great deal of threats to be sued… some of them are actually by people I respect.
As you are aware this is a public forum, people with opinions will post. I have posted an opinion you can disagree and that’s your right. If you have an opposing view I and I’m sure everyone here on the forum would like to hear it.
However as I have stated before if your purpose here on the forum is to Rack Up Posts (12,300 odd) and contribute nothing but scare tactic posts then I do not feel as though your post on this thread is relevant or objective and should be deleted by the moderator.
Mark
WW,
Yes you are right, but it's still my jewels on the chopping block. And yes the banker dose come around to visit me but I always make it on site or in my office.
In fact once you have a few projects underway or probably just one with over 7 digits in the loan most institution will visit you anywhere you like.
Mark
Booboo .... looks like you've been lost in the melee!
I'm waiting to hear from the more experienced investors out there, since I'm in the same position as you.
Currently, it looks like you and I may have to sit back and let rent & equity increase (perhaps throw in a pay rise) before we strike again. Sigh. Then back in!
DJ
I'm waiting to hear from the more experienced investors out there, since I'm in the same position as you.
Currently, it looks like you and I may have to sit back and let rent & equity increase (perhaps throw in a pay rise) before we strike again. Sigh. Then back in!
DJ
DJ,
Your right the thread has been a little off topic and I take part responsibility for that.
The reason why the answer has not been so forthcoming is the question dose not have a straight forward answer, and secondly it's been asked quite a few times before on the forum. I would attach a few links but don't know how too.
If you have equity you can't use because of your income, then one solution is to use low doc and no doc type loans where you state what your income is instead of showing proof of what your income is.
This of cause needs to be justified, if you earn 100K and you stated you earned 1mil then you really should have some substance to this. eg. you might be intending on selling a few of your investments over the next couple of years. During the course of those years if you didn't sell them well it may not mean you lied on the application instead your circumstances just changed.
Mark
PS thanks for the kudos everyone you just doubled the amount I have.
Your right the thread has been a little off topic and I take part responsibility for that.
The reason why the answer has not been so forthcoming is the question dose not have a straight forward answer, and secondly it's been asked quite a few times before on the forum. I would attach a few links but don't know how too.
If you have equity you can't use because of your income, then one solution is to use low doc and no doc type loans where you state what your income is instead of showing proof of what your income is.
This of cause needs to be justified, if you earn 100K and you stated you earned 1mil then you really should have some substance to this. eg. you might be intending on selling a few of your investments over the next couple of years. During the course of those years if you didn't sell them well it may not mean you lied on the application instead your circumstances just changed.
Mark
PS thanks for the kudos everyone you just doubled the amount I have.
wrong
1. Read my posts before you accuse me of contributing nothing. I feel that I have contributed a lot to this forum. I came into this forum seven years ago as a newbie seeking advice, and as I have bought properties, asked questions as I've gone along, and contributed knowledge as I've learnt, I think that I have given (as well as received) a fair share of knowledge along the path. I feel that my post is both relevant, and objective- and that I have contributed a lot to the forum.
2. I am a moderator. Any action that I take in that capacity is discussed with the others. If I am out of line, any post I make, or any action I take, will be reversed.
Mark,
You've come on pretty strong with your opinion on this matter. That's great up to a point. We gather you've had a pretty bad trot with MB's and that you have found a more preferential way of obtaining finance. That's great - well done.
Given the figures that you are quoting, you are well and truly above most, if not all, of the forum members. Perhaps your techniques and tactics are perfectly suitable for your station in life, but aren't quite appropriate for Booboo at his / her stage in life.
Yes we know the rules and guidelines change as the numbers get bigger, but the foot soldiers down below you, do generally appreciate the assistance the MB's provide their clients navigating the banks 'systems'.
I think you're way out of line turning your spray towards Rolf and Geoff. They generally are pretty good guys and have been assisting people on this forum for a good while now. Your comments re: Geoff's number of posts is uncalled for. It's not relevant to the MB discussion.
I felt compelled to write this note as I don't believe Geoff shouldn't have to defend himself against your spray.
Instead of hooking into Rolf and Geoff, I'd be more interested in hearing some positive tales from yourself about how you achieved your remarkable position thus far.
You've come on pretty strong with your opinion on this matter. That's great up to a point. We gather you've had a pretty bad trot with MB's and that you have found a more preferential way of obtaining finance. That's great - well done.
Given the figures that you are quoting, you are well and truly above most, if not all, of the forum members. Perhaps your techniques and tactics are perfectly suitable for your station in life, but aren't quite appropriate for Booboo at his / her stage in life.
Yes we know the rules and guidelines change as the numbers get bigger, but the foot soldiers down below you, do generally appreciate the assistance the MB's provide their clients navigating the banks 'systems'.
I think you're way out of line turning your spray towards Rolf and Geoff. They generally are pretty good guys and have been assisting people on this forum for a good while now. Your comments re: Geoff's number of posts is uncalled for. It's not relevant to the MB discussion.
I felt compelled to write this note as I don't believe Geoff shouldn't have to defend himself against your spray.
Instead of hooking into Rolf and Geoff, I'd be more interested in hearing some positive tales from yourself about how you achieved your remarkable position thus far.
DJ & BooBoo,
Please note that your estimate of income needs to be honest and may be assessed by the ATO. If you claim on your application that you earn $200k but have only paid taxes based on $50k then you may find yourself in hot water.
Also remember that you have to be able to service the loan, so falsely stating your income (ability to pay) may result in you losing more than you gain.
One suggestion I will make is to not cross collateralise your investments. That is, for each property have a stand alone loan. That way you have more flexibilty should you need to sell or refinance further down the track.
Good luck with your investing future.
Regards
Andrew
Hi Booboo
I’m in the same boat. I have to use Low doc. I have an ABN as a sole trader. My income for 06/07 is PAYE + the profit from the sale of IP from last year and 07/08 is PAYE + potential sale of IP that has LVR of 50%.
I’m currently trying to re-finance my last project. Have called two MB (who use different lenders). One suggested Homeside and the other Citibank.
Both approved initially however MB phoned me yesterday and informed me that Homeside have changed their rules and won’t do low-doc for a trust.
Citibank has worked out fine and am singing doc's this week.
Wayne
I’m in the same boat. I have to use Low doc. I have an ABN as a sole trader. My income for 06/07 is PAYE + the profit from the sale of IP from last year and 07/08 is PAYE + potential sale of IP that has LVR of 50%.
I’m currently trying to re-finance my last project. Have called two MB (who use different lenders). One suggested Homeside and the other Citibank.
Both approved initially however MB phoned me yesterday and informed me that Homeside have changed their rules and won’t do low-doc for a trust.
Citibank has worked out fine and am singing doc's this week.
Wayne
just curious... are the rates higher or did you find any disadvantages over non-low-doc loans???
slightly higher 7.61 with Citibank
Thanks people..
Well after not having been able to read the reply's to my initual question for a while.....
To all those who actualy risisted getting on their own own soap box and try and give some helpfull advise, I would like to extend a very sincere "Thanks".
Any advise is always welcome and appreciated, unfortunotly I do find people with swollen personal ego's a rather pointless bore. I find it rather interesting to hear from others on how they achieved their goals and the various methods they used to over come the aray of herdles thrown at them, I find it very inspiring to look for alternatives when faced with my own. Again "Thanks".
Just to finish with... I have since had meeting with a "broker" who seems extremely knowledgable and he has organised a way ahead for us, we will now be purchasing a number of new IP's in the next 6 to 8 weeks. We found that the support, ideas and knowledge of the broker has been of great assistance to us having the confidence and knowhow to continue our plans.
We have had dealings with a few different brokers over the last few years and found them extremely helpfull, but you do need to make sure the broker your dealing with is up to speed with the type of investing you plan to do. The previous broker we had I thought was fantastic but his knowledge was only suitable for "home" mortgage type situations not investment where as the one we are now using seems very experianced at the investment styles... You have to compare "apples" with "apples" so to speak..
Well after not having been able to read the reply's to my initual question for a while.....
To all those who actualy risisted getting on their own own soap box and try and give some helpfull advise, I would like to extend a very sincere "Thanks".
Any advise is always welcome and appreciated, unfortunotly I do find people with swollen personal ego's a rather pointless bore. I find it rather interesting to hear from others on how they achieved their goals and the various methods they used to over come the aray of herdles thrown at them, I find it very inspiring to look for alternatives when faced with my own. Again "Thanks".
Just to finish with... I have since had meeting with a "broker" who seems extremely knowledgable and he has organised a way ahead for us, we will now be purchasing a number of new IP's in the next 6 to 8 weeks. We found that the support, ideas and knowledge of the broker has been of great assistance to us having the confidence and knowhow to continue our plans.
We have had dealings with a few different brokers over the last few years and found them extremely helpfull, but you do need to make sure the broker your dealing with is up to speed with the type of investing you plan to do. The previous broker we had I thought was fantastic but his knowledge was only suitable for "home" mortgage type situations not investment where as the one we are now using seems very experianced at the investment styles... You have to compare "apples" with "apples" so to speak..
Wow, you must have had a bad experience...
HandyAndy,
And still do.
I accept that for the majority of people using a broker is the answer. I just take offence to the attitude pertraid that the only path is to use a broker, don't limit your options.
My loans are quite large now, and when I have used brokers a brokerage fee is charged. However the fee is taken out of the proceeds of the loan (not paid by the funder). Without the skills that hindsight gives you, I paid some pretty hefty prices over the last couple of years.
Things are different for me now, knowledge and agression do save me money.
eg. I had a phone call last week with a potential funder (through a broker) who dropped his fee $100K after a robust 5min converstaion. Had this converstaion happend 18 months ago I would have paid the fee.
I don't disagree with paying a fee for a service, but do take acception to paying too much. I'm the one with the jewles dangling in the breeze, no money flows into my account until the end. But along the way everyone has their hand out, and no one cares if I get to finish as long as they have their money.
Try paying $300k in fees up and above the purchase costs and settlement costs, then meet the repayments for the next 12 months while you struggle to get a DA through.
Not everyone is looking after your best interest.
Booboo not sure who your referring too here, property investing is full of ego's and for this reason is an exciting thing to be in. I couldn't count the amount of times someone has said "No" to me, can't imagine where I would have been without an ego.... back at work for the boss maybe.
I wish you all the best in your investing strategy.
Mark
Try some of these strategies?
First do you have a budget and know where your money is going?
Any hire purchase or car loans?
Can I suggest that you look at consolidating all your loans with a bank and getting a discounted rate using a wealth package. This might free you up with more income. Also look at any fees yiou might pay for keeping accounts. Members equity lend on same rate as discounted wealth packages
Also are your loans interest only and have you reveiwed your rent lately even increasing them by $5-10 a week. Also do you have a credit card and what is its limit if you lower this it increases your servicability.
Also any children at school or university any cost of these being reduced in future.Any increases in child payment benefits
have you had a depreciation schedule done on your properties to access more fund there? any become positive cash flow.
Also I have heard excellent results from some of the mortgage companies in Money magazine and you can even gert given rebates up to $1000.00
Finally have an accountant that has investment property themselves and get him to reveiw your portfolio set up.
What about going in with friends family to buy property but make sure get water tight legal advice on the best set up.
Finally be patient and dont stretch you finances so you are not enjoying your life and family.
Just some of the things I have done hope this helps ?
First do you have a budget and know where your money is going?
Any hire purchase or car loans?
Can I suggest that you look at consolidating all your loans with a bank and getting a discounted rate using a wealth package. This might free you up with more income. Also look at any fees yiou might pay for keeping accounts. Members equity lend on same rate as discounted wealth packages
Also are your loans interest only and have you reveiwed your rent lately even increasing them by $5-10 a week. Also do you have a credit card and what is its limit if you lower this it increases your servicability.
Also any children at school or university any cost of these being reduced in future.Any increases in child payment benefits
have you had a depreciation schedule done on your properties to access more fund there? any become positive cash flow.
Also I have heard excellent results from some of the mortgage companies in Money magazine and you can even gert given rebates up to $1000.00
Finally have an accountant that has investment property themselves and get him to reveiw your portfolio set up.
What about going in with friends family to buy property but make sure get water tight legal advice on the best set up.
Finally be patient and dont stretch you finances so you are not enjoying your life and family.
Just some of the things I have done hope this helps ?
Just received a letter posted 20th SEPT from McQuarie that in regards to our no-doc;
due to market interes rate increases, which have occured as a result of volatility in credit market conditions your Standard Var Rate has increased by 0.30% to 8.85% effective 17th SEPT
An option is to go Fully Verified
RAMS low-doc is around 7.98% both the above are variable and through trusts
other loans are fixed and vary from 6.89 -6.99%
Mortgage brokers
Hi All,
4 years ago I tried to refinance a house and 2 units so that I could purchase another house.
Due to equity limitations and my lack of knowledge of finance, my bank (CBA) would not lend me the money.
As I was desperate to buy the new house I contacted a mortgage broker who obtained the same financials as CBA had and was able to get me the finance, better still...none of the properties were cross collaterallised!
The amount financed was just over a $1 million and I guess the broker probably made himself a nice fat commission and some trailing commissions as well.
The dirt underneath that new house has probably increased in value by $400,000 in the last 4 years. With my level of knowledge at the time, I would have missed out on this without the help of the broker.
I find it very acceptable for everyone to make a nice fat profit out of these kinds of deals.
Cheers
Glenn
ps...guess who the mortgages were placed with!! CBA of course! Same documentation, no porkie pies on applications!
Hi All,
4 years ago I tried to refinance a house and 2 units so that I could purchase another house.
Due to equity limitations and my lack of knowledge of finance, my bank (CBA) would not lend me the money.
As I was desperate to buy the new house I contacted a mortgage broker who obtained the same financials as CBA had and was able to get me the finance, better still...none of the properties were cross collaterallised!
The amount financed was just over a $1 million and I guess the broker probably made himself a nice fat commission and some trailing commissions as well.
The dirt underneath that new house has probably increased in value by $400,000 in the last 4 years. With my level of knowledge at the time, I would have missed out on this without the help of the broker.
I find it very acceptable for everyone to make a nice fat profit out of these kinds of deals.
Cheers
Glenn
ps...guess who the mortgages were placed with!! CBA of course! Same documentation, no porkie pies on applications!
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