I learnt that one the hard way too...........I know the mob
Its not that its tick and flick that hurts, its the tick and flick AND add 1 % margin ...............
ta
rolf
Purchase & Construction Loan
- Thread starter JCM
- Start date
I learnt that one the hard way too...........I know the mob
Its not that its tick and flick that hurts, its the tick and flick AND add 1 % margin ...............
ta
rolf
Common channel conflict problem as well.
I'll just add to that point that private funders are very annoying to deal with. Each step you take along the process of getting the funds results in more fees being added on that weren't there before, basically in an attempt to extort the client. Very bad taste in the mouth.
Quote:
Originally Posted by JCM
Thanks for the input guys.
I guess my next question would be, that with so many brokers out there, how does one go about sorting the wheat from the chaff and find a Mortgage Broker that is very knowledgeable in a certain field, in my case its multi development sites and also one that can give you all the info upfront with no hidden agendas.
I guess it would also be important to be to meet up occassionally and therefore would need to reside nearby!
Talk to one who's done it all before. I think tobe here specialises in construction loans so maybe contact him about it. He's in Melbourne too.
Ill pass, putting resi loans up you know are going to paid out within a year also impacts badly on the brokers reputation with the lender, along with the issues of fee for service etc.
Originally Posted by JCM
Thanks for the input guys.
I guess my next question would be, that with so many brokers out there, how does one go about sorting the wheat from the chaff and find a Mortgage Broker that is very knowledgeable in a certain field, in my case its multi development sites and also one that can give you all the info upfront with no hidden agendas.
I guess it would also be important to be to meet up occassionally and therefore would need to reside nearby!
Talk to one who's done it all before. I think tobe here specialises in construction loans so maybe contact him about it. He's in Melbourne too.
Ill pass, putting resi loans up you know are going to paid out within a year also impacts badly on the brokers reputation with the lender, along with the issues of fee for service etc.
Doubt Rams would do it, not at 80% Low doc.
Im still getting my head around policy, but so far saying no seems to be the safest bet. I thought without credit score things would be a little simpler, but there are other issues which are still tripping me up, such as the dreaded variable expenses calculator...
Im still getting my head around policy, but so far saying no seems to be the safest bet. I thought without credit score things would be a little simpler, but there are other issues which are still tripping me up, such as the dreaded variable expenses calculator...
Not sure of Lender Marty
Hi all,
The story is that I rang a few online Mortgage Brokers to see what they can offer. Initially I was going to go with a private lender who informed it would be best for me to purchase site cash then borrow for Construction at 10-11% plus upfront fee of 1-2%.
I rang a couple of online Brokers that informed me under my circumstances that I could get a standard Low Doc Loan at 7% or 6.8% if over $500K borrowings on a 30yr Loan etc. Sounded great, but then I found out the Broker I was chatting with was in Sydney and I am in Melbourne so I didn't pursue it any longer as I like the idea of visiting my Broker at his office. So I never got to find out who the Lender was.
I would be interested in anyone that can inform me on any one they may be able to recommend that can give me a similar deal and in located in the Nth or West of Melbourne? Similar deal meaning taking out a standard bank Low Doc Loan as opposed to second tier lenders. I do not know much about the difference except for the higher interest rate and sometimes higher upfront commission with the second tier lenders.I am assuming in my situation standard bank loans would be the best option. I am currently waiting for a callback from another broker recommendation but I have left 2 messages on his mobile 2 days ago and hasn't replied. Not a very good start to a long term relationship.
Regards
John
Hi all,
The story is that I rang a few online Mortgage Brokers to see what they can offer. Initially I was going to go with a private lender who informed it would be best for me to purchase site cash then borrow for Construction at 10-11% plus upfront fee of 1-2%.
I rang a couple of online Brokers that informed me under my circumstances that I could get a standard Low Doc Loan at 7% or 6.8% if over $500K borrowings on a 30yr Loan etc. Sounded great, but then I found out the Broker I was chatting with was in Sydney and I am in Melbourne so I didn't pursue it any longer as I like the idea of visiting my Broker at his office. So I never got to find out who the Lender was.
I would be interested in anyone that can inform me on any one they may be able to recommend that can give me a similar deal and in located in the Nth or West of Melbourne? Similar deal meaning taking out a standard bank Low Doc Loan as opposed to second tier lenders. I do not know much about the difference except for the higher interest rate and sometimes higher upfront commission with the second tier lenders.I am assuming in my situation standard bank loans would be the best option. I am currently waiting for a callback from another broker recommendation but I have left 2 messages on his mobile 2 days ago and hasn't replied. Not a very good start to a long term relationship.
Regards
John
JCM, if this sort of development is something you may be undertaking again in the future, if its something your interested in pursuing, your better off getting a commercial loan now, and building a track record as a developer rather than trying to do it as a resi deal.
If the numbers dont work for you as a commercial transaction, if the profit margin is that slim (in percentages terms) that you need to do it as resi, then Id seriously reconsider the project.
If the numbers dont work for you as a commercial transaction, if the profit margin is that slim (in percentages terms) that you need to do it as resi, then Id seriously reconsider the project.
Sounds like Rams to me at those rates and over under $500K pricing I am almiost sure its them. But agree with Tobe do commercial if you can
Indeed. I expect a legion of brokers and lenders to be lining up for this one.
Of course, your broker, having covered hIs/her is own **** by charging a fee, will let the lender know it's short term finance so that they don't do their dough.
Tobe just settled a 3 on one title low doc, cash out $558k, in a company name....was 60% though. 6.8% too.
If the security is in QLD, that loan it would be win Crap Deal Bingo hands down.
My loan from a few years ago for my 3 unit build in Sydney was Commercial 60% lend 8.4% IO for 12 months from completion the 10 years P&I with WBC.
Not a great deal, but not a lot of interest at the time I was sourcing it.
I'll strata and refinance to resi 80% LVR at completion. I've got a year to do it before it reverts to P&I and sinks me under the repayment obligations, but I'll be knocking it over immediately I complete.
My current fight is trying to get an owner builder in Brisbane across the line for another $300K odd but WBC not interested with my current borrowings and servicability picture until the Sydney build is finished and tennanted / refinanced. Then it all looks a lot prettier.
Sucks sitting on your hands in Brisbane though for another 3-4 months while I finish the Sydney job. Any brokers who reckon they could help with the Owner Builder please PM me.
Cheers,
Michael
Not a great deal, but not a lot of interest at the time I was sourcing it.
I'll strata and refinance to resi 80% LVR at completion. I've got a year to do it before it reverts to P&I and sinks me under the repayment obligations, but I'll be knocking it over immediately I complete.
My current fight is trying to get an owner builder in Brisbane across the line for another $300K odd but WBC not interested with my current borrowings and servicability picture until the Sydney build is finished and tennanted / refinanced. Then it all looks a lot prettier.
Sucks sitting on your hands in Brisbane though for another 3-4 months while I finish the Sydney job. Any brokers who reckon they could help with the Owner Builder please PM me.
Cheers,
Michael
I think Marty was tongue in cheek, I havent settled 3 units on one title since the GFC, full or low doc.
Rams dont have an issue with construction, they do it pretty well, and Rams low doc policy for construction is mirrored to normal policy.
I dont think more than 2 would fly under low doc at 80%, they look very closely at security. Might do at 60%, with Bas.
Rams dont have an issue with construction, they do it pretty well, and Rams low doc policy for construction is mirrored to normal policy.
I dont think more than 2 would fly under low doc at 80%, they look very closely at security. Might do at 60%, with Bas.
