Renovating with Extended Settlement for 100% fin

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From: Matthew Campbell


SO I am looking at this also..

Is anyone doing this and can suggest how they do it?

Old junker house that needs lipstick and some stockings...

Get an extended settlement or clause in the contract that allows for improvements during the settlement period...

When time comes for settlement obtain a valuation on CURRENT VALUE as opposed to purchase price..

Perceived problems...

How to get the vendor to agree to this?

Legal implications eg "What if I make an error and run out of money or can't get finance and Mr. Vendor has a half finished house?"

Insurance?

How to estimate renovation PERIOD and costs?

Can anyone else suggest OTHER problems encountered?


Excuse my ignorance as an IP newbie, I'm just trying to LEARN :)


Thanks in advance

Matthew
 
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Reply: 1
From: Rolf Latham


Hi

Bit tradionalist but it works !

Save 5 % over 6 months.

Save another 4 % for costs

Approach lender for 95 % loan.

Buy property.

Improve property

Sell or revalue. In either case leave your exisitng loan in place. Strip equity either from refinance or sale and do it again.


Ta

Rolf
 
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Reply: 1.1
From: Matthew Campbell


My brain is open...give me ideas, things I can play with, envision..

Where I feel most stuck is the line "You can only borrow xxx dollars because your income is only xxx" , which barely lands me in ANY Sydney property...

Throw ideas at me how to overcome this..please :)


Im assuming you can help me with this one Rolf, considering you're a financier..

Thanks in advance

Matthew
 
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Reply: 1.1.1
From: Anonymous


Find a rich mistress
Get a better job
Look at lower priced areas
 
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Reply: 1.1.2
From: Rolf Latham


Hi Matthew

Sorry, but obviously your income is one major determinent of your borrowing capacity.

Any lender will want you to be able to service the loan. Some will lend a lot more than others too, and you may want to do some work with an independent broker to see what options there are.

If you have a 20-25 % deposit + costs you can borrow as much as you like for an IP on a lite docs loan. Obviously the rates are not going to be flash, nor the costs but up to a mill is not uncommon.

Ta

Rolf
 
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Reply: 1.1.2.1
From: Glenn S


On 7/14/01 8:52:00 PM, Rolf Latham wrote:
>If you have a 20-25 % deposit
>+ costs you can borrow as much
>as you like for an IP on a
>lite docs loan. Obviously the
>rates are not going to be
>flash, nor the costs but up to
>a mill is not uncommon.
>
>Ta
>
>Rolf

What is a lite docs loan?
 
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