Hi Nathan,
Just wondering how you reval within a month or so. I was under the impression that banks won't reval unless you are applying for a new loan?
Also, what do you mean "extract over 100%"?
I don't doubt anything you say, just trying to understand how you do it and how it works.
Kind regards,
Brad
Thanks brad.
I mean well, lets use my reno property I am working on atm at Muswellbrook.
I paid $105,00 (asking $115,000)
I am spending $30k reno so $135,000 spend.
I reval for $250,000 (maybe $260,000) - Val sitting on desk of bank next week, my banker already run one and comes up stumps.
So $250,000 x 80% = $200,000 new loan.
- Inital funds of $135000 = 100% loan and still got $65,000 extra. Rent $400pw.
Now I only pull funds to support other properties or deals as resi interest is better than other interest which can kill.
The deal doesnt need to be that good.
It could be like one I bought before xmas in sydney for $205,000 got a loan for 80% or $164,000 (thereabouts)
Now I did nothing to this home, I will reval in a couple of weeks when I meet with banker to reval that @ $250,000 (Desktop val I did myself said $296,000) and get 80% loan or $200,000 therefore I release all my capital back and the home is self sufficient.
Hope this gives some insight on how it works,