Question regarding commercial deal

[markj]

Just want to know if this finance has legs for approval.

Partner deal

Purchase under trust

Commercial Property
Current annual return = $148,000 approx 5%
Property Value $3,300,000

Partner 1
Cash = $400,000
Income = $160,000 per year
No current mortgage or other finances

Partner 2
House value $1,300,000 - mortgage $600,000
Factory 50% split with other person. Factory value $600,000 - (no Mortgage)
Income = $2000 from factory
Approx $100,000 form business

A couple of Clauses we are hoping to write into contract but not sure how they will effect finance.

Clause's
Vendor pays stamp Duty at settlement
Vendor pays an amount for current damage at settlement

Should be able to match 70% LVR through 400K cash and capital in partner 2 home and factory.

Total income would equal approx
$160,000 Partner 1 income
$100,000 Partner 2 income
$24,000 Partner 2 factory
$146,000 rental income

 

[Belu]

seems like a pretty low return for a comm deal - what is the lease term? what is the land component?

 

[markj]

Thanks for the responce Belu,

Is actually a unit block, hence the smaller return. The current rents are also very much undercapitalised.

Estimated return is approx $249,000 after $200K renovations based.

 

[Bradsdad]

Just want to know if this finance has legs for approval.

Partner deal

Purchase under trust Are partner 1 & 2 the only trustess & benificiaries?

Commercial Property what is proposed/current property use?
Current annual return = $148,000 approx 5% lease terms?
Property Value $3,300,000

Partner 1
Cash = $400,000
Income = $160,000 per year PAYG (if so incl of super?) or S/E. If S/E has business any debts? I appreciate the point below but it's amazing how many times this is missed.
No current mortgage or other finances

Partner 2
House value $1,300,000 - mortgage $600,000
Factory 50% split with other person. Factory value $600,000 - (no Mortgage) Who is the other party (spouse?)
Income = $2000 from factory Partner 2's share or total?
Approx $100,000 form business Again, partner 2's share? consistant over past 2 years?

A couple of Clauses we are hoping to write into contract but not sure how they will effect finance.

Clause's
Vendor pays stamp Duty at settlement
Vendor pays an amount for current damage at settlement

Should be able to match 70% LVR through 400K cash and capital in partner 2 home and factory.

Total income would equal approx
$160,000 Partner 1 income
$100,000 Partner 2 income
$24,000 Partner 2 factory
$146,000 rental income

G'day Mark,

If you could supply the above either by posting or PM it would assist.


Regards

 

[markj]

Hi Bradsdad,

Purchase under trust Are partner 1 & 2 the only trustess & benificiaries?
The benificiaries are set up as Benificiary 1 Family trust belonging to Partner 1
Benificiary 2 Family trust belonging to Partner 2, Befificiary 3 Company


Commercial Property what is proposed/current property use?
Residential apartments

Current annual return = $148,000 approx 5% lease terms?
Currently rented but no agreements in place


Partner 1
Cash = $400,000
Income = $160,000 per year
PAYG
I appreciate the point below but it's amazing how many times this is missed.
No current mortgage or other finances

Partner 2
House value $1,300,000 - mortgage $600,000
Factory 50% split with other person. Factory value $600,000 - (no Mortgage) Who is the other party (spouse?) No this is a business partner
Income = $2000 from factory
Partner 2's share or total? - Partner 2 share
Approx $100,000 form business
Again, partner 2's share? consistant over past 2 years? consistant over past 2years

 

[Rolf Latham]

Hiya mark

This seems not a "normal" deal with all the stakeholders.

Ya arent going to get too much feedback thats reliable here on this data.

Id suggest you get in touch with a broker that knowes what they are doing.

For a start "bradsdad" that has already posted,

also maybe one ( choose one NOT all of them ) of the other mexican forum regs as per below

Medine from

www.mfsimmons.com.au

Pete t from

www.sagelending.com.au

Rolf S from

www.rjafinance.com.au


ta
rolf

 

[markj]

Cheers Rolf

 

[Bradsdad]

Hi Bradsdad,

The benificiaries are set up as Benificiary 1 Family trust belonging to Partner 1
Benificiary 2 Family trust belonging to Partner 2, Befificiary 3 Company

What is the make-up of the family trusts i.e Husband wife trustees and benificiaries along with kids?
Is the company that is benificiary 3 the same company that holds the factory (partner 2 and business partner?
I ask this as it would be ideal if the factory could be kept seperate especially if other owner isn't to have any financial benifit from this transaction.



Residential apartments How many in block? What postcode? Size of apartments? Individual titles or all on one?



Are financials available for last 2 years for all entities?



Regards
Steve