vendor finance back

[grossreal]

hi all
heres a deal
20% vendor finance back for 5 years @ 2% interest rate and you can refinance or pay out the vendor finance by mutual agreement
and we can organise a no doc loan on the 80% but you are not restricted to using our lenders if you can get a better deal
deposit is 5% cash or 10% power bond or deposit bond.
units in penrith from 320k and arncliffe from 400k to 700k arncliffe there are 260 units with 30 presold.
ancliffe is two separate sites and very different views and completion around 30 months one is designed for investors only and will only have tennants no owner occupiers
multipules of
studios,
1
and 2brs
rentals of $280 in penrith and $450 in wolli creek per week
returns are looking currently at 5% ( 3.5% is the norm for this area)
this is aimed at the 2009 market and these are presales with expected growth.
buy off the developer
these are presales before sending to the market.
and is full finance deals
send me an email if interested.
ask any question that you wish

 

[kph]

OK here goes mate:

I am guessing that you are the developer?
Completion may be 30 months but what is the anticipated commencement?
What level of presales do you need before you can start?

kp

 

[grossreal]

hi kph
no amount of pre sales required.

penrith is near complete.

1 site in arncliffe does not require presales.
land and construct done with presale requirement
and we are organising full debt coverage

and the other is already at its required presale value and again looking at full debt coverage.
we are organising four types sales and 20% vendor finance @ 2% for 5 years is but one of those
30 months is the sunset clauses so you do need to orgainse that if using deposit bonds.
the cash deposits are held in trust via a solicitors account.

 

[WashingtonBrown]

HI

I understand you take Credex dollars...?

I started accepting these based upon your advice...now i seem to have loads of these worthless bits of paper.

Perhaps i can use them for the deposit?

Regards

 

[grossreal]

hi WashingtonBrown
what did you buy and sell via credex.
if you have accepted credex as with any trade dollars you do need to understand what you are buying or going to use trade dollars for.
I trade in may currencies and trade dollar some times are used and if people wish to use trade dollars on these developments thats fine by me.
we do need to check out the supplier of the trade dollars and we must have an avenue to on trade them and thats the case with bbx, barter or what was credex and unlike yourself if you are holding credex.
we trade our trade dollars as soon as we receive them and have an out let already organised before accepting them.
credex, barter or bbx work very well if you understand what they are and if you buy or sell anything on information on a board well you are trading very different to me.
I didn't accept the purchasers credex for my duplex because its arequirement that the supplier os the trade dollars must also provide an avenue to use the trade dollars( my position covered)
if you accept any trade dollars without having an outlet and if you are holding trade dollars thats what you have done then you should mark that down to learning.
for those with barter or bbx then we are interested in accepting these form of trade dollars provided they meet our requirements and are assessed on a sale by sale basis.
deposit can't be accepted for any trade dollars
normal deposits
cash or bonds are ok
by all means ask any question you wish with regards to these units

 

[willair]

this is aimed at the 2009 market and these are presales with expected growth.
buy off the developer
these are presales before sending to the market.

IMHO
Gross-real,what do you think the property market will be like in 2009
you must have some idea,But when you look at Westpoint,and now
Fincorp,and another 10 that will go down the same road over the
next six month's,any knowledgeable aggressive investor would not
touch that sort of investment under those High Risk terms..
good luck willair..

 

[grossreal]

hi willair
in my crystal ball I see the sydney market being critical in respect to rentals and the areas that I have now and am aiming at currently have 1% vacancy rates and thats falling even lower.
rentals in the arncliffe area are at 450 a week for a 2br and climbing.
big difference in investing in developments and investing in mezz funding they are not even close.
westpoint and fincorp have not alot to do with funding or developing they are structured for a very different reason.
these units are being offered as any normal presale the difference is that we have a high margin and as such can do vendor finance back at these rates.
this is not mezz funding.
the chinese have a very good saying if I owe you money you have a problem if you owe me money I have a problem if things go wrong.
with vendor finance the builder developer us in this case is giving you the finance to buy and is using profits to do that.
from a security point of view you are better off as you are delaying the payment of the unit.
as we are using profit after loan we are looking at full debt coverage and the 80% covers the total cost plus a bit

 

[WashingtonBrown]

by all means ask any question you wish with regards to these units

Heres one...DO THEY EXIST?

Or are they in the Grossreal Fairy Land?

 

[Qlds007]

Was just wondering which lender does not require evidence of deposit on a Nodoc loan.

The 6 / 7 lenders i deal with want to see funds to complete prior to approval.

Is the 20% deposit declared to the first mortgagee ?

 

[grossreal]

hi richard
the deposit is standard 5% and as these are not a requirement for any lender for the projects.
at settlement the vendor finance back comes in
we already have a lender that will bundle finance the buildings and it is a no doc, low doc bundle.
as you may or may not be aware you can bundle finance deals
just the same as you would say a originator deal
you buy it whole sale and sell it retail in this case we are doing it a bit different in that each site is its own deal.
you don't need to have any funds prior to complete we do.
in these deals we check out the buyer to make sure they have the capacity to complete
they supply the deposit.
and then at completion of the site which we already have the funding
we refinance as a bundle all the units
we lend against the block or group as a bundle and resell to our client base which has purchased the units.
if they wish there own finance fine we have a lower bundle.
we are talking 125mil in a bundle and there are lots of superfunds,equity funds or in our case banks that will originate that deal.

with regards to is the 20% told to the funder
yes
we form part of the funder as an originator.
I don't wish to turn this tread into who I fund this unlike other threads with regards to funding.
if you are not sure how groups like meriton or mirvac can do finance at 5%
its because they bundle the deals and then wholesale the loan book.
its not that difficult.
you could if you wish
as some have list the loan book.
but this is again not this thread.
this thread is for people who wish to get into a unit in sydney in 2009 with 100% borrowings
they do need to put down the 5% cash that goes into a solicitors account and they then pick from the units left and wait.
the units are built by the builder recommend by the lending bank.
and no I am not going into there funding etc.
for those that have hit the serviceability wall
thats who can look at these units they are down town sydney.
I don't discount any property that I build so if you are looking for bargain knock the developer price down thats not us.
I am at bank debt coverage and are looking at full debt coverage.
with regards to fairy land some people on these boards are already there
for those that wish to get the 20% and not give away 40% in profit and only have say 25 or 30k this could be something to look at.
we have a max of three unit per buyer not for the bank security but ours.
I am ceo and all deals come thru me.
post any question with regards to these units but if you are going to post fairytail stories please save the time you take to type.
for those that are doing the numbers it averages out if the rate is 7.2% for the first
it averages out at an average of 8.8% across the board with 100% lending which is not a bad rate and hell of alot better then any efm, reverse mortgage or mezz finance.

 

[WashingtonBrown]

I am ceo and all deals come thru me.

hhehehehe

What of the Gross Realisation Fund??

mmm

You make me laugh / cry

Get a GRIP Gross...