10-4 there Bandit, looks like we got us a convoy!!!You paint a vivid picture TPFKAD
I could almost imagine the Daz express thundering through, big solid and chunky
So Dazz
- Thread starter boomtown
- Start date
If you bought it vacant, boomtown, then yes, you probably could borrow 100%...
What you do is buy it from a former owner-occupier who hasn't bothered signing up a tenant. As you probably know, commercial properties with no tenants are worth a lot less - the value of a commercial property's all about the lease/tenant. Let's say that you could buy such a property for, say, $1M. But then, prior to settlement, you sign up your government tenant willing to pay $100K per year for 10 years, and you take that to your commercial valuer. The commercial valuer says that based on an average 6% cap rate in that area, because you now have a $100K pa lease, your property is now worth $1.67M. Then you go to the lender with the $1.67M valuation, and borrow the $1M to buy the property, and you only need to borrow 60% LVR to cover 100% of the purchase cost. Then you just sit back and take profits...
Simple, hey?
No I haven't done this!
What can I say? It sounds a lot easier when you say it quick. But I do know several people who have employed this strategy, so it's definitely doable.I would have thought "swings and roundabouts"... It's probably easier to buy vacant commercial properties at a discount at the moment, I would think, but also more difficult to sign up premium tenants on strong rents. But if you buy a property that's ideally suited to a particular premium tenant, I think you could possibly swing these factors in your favour.... ie buy at a discount but still get a strong tenant.
hi boomtown
sorry to say your question is like a chinese person saying if I bought a 2br unit in australia will I get 10% growth
the answer is yes
the trouble is where in aust
whats the rent for the area and a whole load of other questions and would take 5 pages to list.
for a start I would not buy vacant land anywhere not even rural land.
sorry if it had a tenament maybe but thats different.
can you get 100% finance on commercial
well can you get 100% finance on resi
the answer to both is yes
you just have to buy at 65% of true market val
and refinance no rocket science there.
but how is that done
now thats a very different.
if the question is can it be done
the answer is yes
if the question is how is it done very different
and you for one have my number and you know its not for a board
there are lender out there still in the market fewer yes but still there.
but for me I would look at resi at the moment and have a good read of sitloti and this is the ideal time to do duel investing
and with duel investing yes 100% lender is not only possible currently its the only way I see to get 100% funding
and by all means ask away
you will see from last time I will not get into anything todo with my companies nor am I interested in going into formulars or layering but
in answer to your question can you get 100% funding the simple answer is yes
not sure about the vacant block of land
I have not nor would I think of buying one buts thats me as I want embedded equity thats equity from day one
not cash flow thou thats possible but equity.
because thou alot of people keep saying that cash is king
for me thats not true
for me equity is king to cash by a 100 miles as you can use equity where you can't use cash
but you can use equity when ever you need cash
and thats a very big difference and if you do not understand that well all I can say is start to learn
equity is alot more powerful then cash and does not cost the interest or loss of earnings that cash does.
get to understand equity and how to use it and when you understand it and how to use it
you will find that 100% lending is very possible in resi and comm.
but again thats a very long post.
oh and the ,,, ...
still apply
as I have still not got any better at posting.
if I look at your 10% deal the answer is yes
I would do 70% at 4.5% and the 30% at 15%
so say its 1 mil
70% at 4.5% thats 31.5% for 3 years fixed
and 300k at 15% thats 45k
so thats 76.5k and you gat 100k so 23.5 k and thats could be taken up by the mezz but I don't think so they would leave that as the buffer.
so simple answer would be yes
but there are a few hoops to jump thru
sorry to say your question is like a chinese person saying if I bought a 2br unit in australia will I get 10% growth
the answer is yes
the trouble is where in aust
whats the rent for the area and a whole load of other questions and would take 5 pages to list.
for a start I would not buy vacant land anywhere not even rural land.
sorry if it had a tenament maybe but thats different.
can you get 100% finance on commercial
well can you get 100% finance on resi
the answer to both is yes
you just have to buy at 65% of true market val
and refinance no rocket science there.
but how is that done
now thats a very different.
if the question is can it be done
the answer is yes
if the question is how is it done very different
and you for one have my number and you know its not for a board
there are lender out there still in the market fewer yes but still there.
but for me I would look at resi at the moment and have a good read of sitloti and this is the ideal time to do duel investing
and with duel investing yes 100% lender is not only possible currently its the only way I see to get 100% funding
and by all means ask away
you will see from last time I will not get into anything todo with my companies nor am I interested in going into formulars or layering but
in answer to your question can you get 100% funding the simple answer is yes
not sure about the vacant block of land
I have not nor would I think of buying one buts thats me as I want embedded equity thats equity from day one
not cash flow thou thats possible but equity.
because thou alot of people keep saying that cash is king
for me thats not true
for me equity is king to cash by a 100 miles as you can use equity where you can't use cash
but you can use equity when ever you need cash
and thats a very big difference and if you do not understand that well all I can say is start to learn
equity is alot more powerful then cash and does not cost the interest or loss of earnings that cash does.
get to understand equity and how to use it and when you understand it and how to use it
you will find that 100% lending is very possible in resi and comm.
but again thats a very long post.
oh and the ,,, ...
still apply
as I have still not got any better at posting.
if I look at your 10% deal the answer is yes
I would do 70% at 4.5% and the 30% at 15%
so say its 1 mil
70% at 4.5% thats 31.5% for 3 years fixed
and 300k at 15% thats 45k
so thats 76.5k and you gat 100k so 23.5 k and thats could be taken up by the mezz but I don't think so they would leave that as the buffer.
so simple answer would be yes
but there are a few hoops to jump thru
hi boomtown
mezz for some reason has been given the bad paint brush but it has been used for along time.
people think of mezz as westpoint etc
but mezz is just vanilla finance and is very usefull if done right
I as you know like mezz as its a high income earner and also can get you over the lending numbers so for people that don't understand it have a read.
and just incase you think I will be changing my name the answer is no.
nor am I going to get anybetter at the ,,,...///''';;;?? for that matter
mezz for some reason has been given the bad paint brush but it has been used for along time.
people think of mezz as westpoint etc
but mezz is just vanilla finance and is very usefull if done right
I as you know like mezz as its a high income earner and also can get you over the lending numbers so for people that don't understand it have a read.
and just incase you think I will be changing my name the answer is no.
nor am I going to get anybetter at the ,,,...///''';;;?? for that matter
For what its worth Dazz, you are still an insperation to many on this board including myself. At the end of the day, please remember that this is a public board, who knows the real identity/motive of posters.
Its a bit like politics, whilst the silent majority might support a view an absasive person/poster can persist in reflecting a viewpoint that isnt representative of the population of people that read your posts for insperation.
Afterall at the end of the day many of the more experienced posters give their experiences/advice/opinions free grata. Last time i checked we are not being asked for $5000 fees for turbo charged investment advice
.Thanks again to you and the other long time members on this forum (special personal thanks to Keith for some of his posts which i will explain in the years to come if things work out for me)
You paint a vivid picture TPFKAD
I could almost imagine the Daz express thundering through, big solid and chunky
whereas we are still at this stage
I for one enjoy your posts TPFKAD and am amazed at what you've done to date its certainly food for thought, congratulations, hope your semi-retirement kicks in soon as well
Haha i love this one.
