The Good Mortgage Broker/The Mythical Beastie

[Mark C]

I build a 4 pack of units with the intention to sell when they are finished, the estimated profit on this is $500K (after all taxes expect income tax).

I can complete from start to finish within one financial year, when filling out a Low doc loan application what is the income I state on the form?

When the project is completed I decide not to sell them but hold instead.

What then is my declared income?

 

[Spectre]

Mark
You're an interesting guy. I dont think there is an acutal declarable income due to you have so many irons in fires (apparently)

So I'll take a punt and say....
$1.00 (or thereabouts)

probably be wrong (99.9999% chance of it) but again, not sure if you're doing ld commercial or res.

 

[Spectre]

Mark C,

And, can we start calling MB's 'beasties' from now on?

GSJ

GSJ
If the worst thing someone is going to call me is a beastie then I'll survive. I've been called a lot worse.

Wonder what we call clients then...

 

[Mark C]

Mark
You're an interesting guy. I dont think there is an acutal declarable income due to you have so many irons in fires (apparently)

So I'll take a punt and say....
$1.00 (or thereabouts)

probably be wrong (99.9999% chance of it) but again, not sure if you're doing ld commercial or res.

Lukentel,

I don’t think I explained myself properly, the intention was to define some issues with filling out Low doc/No doc forms. In particular with income and having some basis for declaring that income.

If I knew I was going to build and sell a development and make $x, then stating my income as $x is no problem (I think). But if I don’t sell the development and decide to hold it, then what income should I state on the declaration $0? I will make $x in equity but earn nothing in income.

If I state $0 I will be unable to finish the development.

As I know there are a number of brokers who read this forum what would you suggest I write on the declaration?

Mark

PS I thought MB stood for Mortgage Beastie anyway.

 

[Simon]

Lukentel,

I don’t think I explained myself properly, the intention was to define some issues with filling out Low doc/No doc forms. In particular with income and having some basis for declaring that income.

If I knew I was going to build and sell a development and make $x, then stating my income as $x is no problem (I think). But if I don’t sell the development and decide to hold it, then what income should I state on the declaration $0? I will make $x in equity but earn nothing in income.

If I state $0 I will be unable to finish the development.

As I know there are a number of brokers who read this forum what would you suggest I write on the declaration?

Mark

PS I thought MB stood for Mortgage Beastie anyway.

Will your income from the previous financial year cover the deal?

What about your income to date from this financial year?

If you need a loan that doesn't need a declared income then consider a NODOC loan.

 

[Spectre]

As I know there are a number of brokers who read this forum what would you suggest I write on the declaration?

Mark

Dunno, I was only guessing what you'd put. Your kind of financing isnt really my cup of tea shall we say

I'd figure a guy as clever as you with as much going on as you have doesnt need a beastie to tell him

(nb not trying to be offensive to you. hope this helps http://www.google.com/search?hl=en&...e:income&sa=X&oi=glossary_definition&ct=title)

 

[keithj]

I don’t think I explained myself properly, the intention was to define some issues with filling out Low doc/No doc forms. In particular with income and having some basis for declaring that income.

If I knew I was going to build and sell a development and make $x, then stating my income as $x is no problem (I think). But if I don’t sell the development and decide to hold it, then what income should I state on the declaration $0? I will make $x in equity but earn nothing in income.

One of the Lo-doc application forms I've seen asked me to state my income. It didn't specify if it wanted last years actual income or this years anticipated income. Usually docs that want last years actual income ask for it.

I haven't seen many lo-doc applications forms - is this income vagueness normal ?
What do MBs suggest - last years actual or anticipated ?
Can capital gains be counted as income ?

 

[s_t]

My MB and I just put togethor half a page of rough calculations as to my expected income (which I signed) to go towards the application. It didn't have a FY on it either! I assumed it was expected income in 2020!
Nah, I think it was over current FY, and given that this was in July, and my business was 1 yr old and growing, forecasting accurately was basically impossible - make up a few numbers.

 

[sparky23]

I love my mortage broker, without him we were stopped at the post after CBA decided we were maxed out after one block of land and the 2 construction loans for it. 2 years later thanks to my 'Beastie' we have built 3 h/l packages in WA, purchased a new townhouse in WA, have one duplex under construction here in NSW with 2 more duplex blocks to settle over the next few months and hopefully constructed and finished by the end of 2008.

No way could have done it without him!!!!!

Sparky

 

[redwing]

GSJ
If the worst thing someone is going to call me is a beastie then I'll survive. I've been called a lot worse.

Wonder what we call clients then...

Marks

Ha Ha Ha..ahhhhh


Just Kidding of course, but it struck me as funny

 

[Spectre]

wasnt intended that way at all.