Loans for Renovations

[GlennM]

I was wondering if anybody knew of any lenders who provide short term finance (say 4-6 mths) if I wish to commence Buying/renovating/Selling houses?

Are the interest rates comparable to standard property investment loans?


Thanks,


GlennM.

 

[Simon]

Short term finance can be horrible. Sometimes 10-20% per month interest.

I would suggest talking to a reputable broker about setting up a LOC if you already have security.

Cheers

 

[GlennM]

Unfortunately Simon I don't have a sufficient LOC to do this.

How about approaching some of the major lenders, borrow the appropriate funds and then sell after a few months (make sure there are no early repayment fees)? Do this a few times until a renovating history can be established and then approaching the banks as a business?

GlennM.

 

[Rolf Latham]

Hi Glenn

Your major issue is that they will want to see evidence of income in the form of lodged rtns.

If you have equity then not an issue, just go no/lo docs but this seems to be your stumbling block.

ta

rolf