Where and how can I Borrow More?

spooky

spooky

HI All

I have finally hit the wall with the banks wanting to lend me more money for IP's and I want to know where can I get further loans from or Innovative technique for purchasing?

Here's the details

I have 7 IP's current value approx $2.54mil with various loans againt each property total $1.33mil

PPOR approx Value $550k with $80k as my home loan and $174K of Equity loans

Therefore total portfolio value $3.1mil Total Loans $1.58mil LVR 51%

I am Self employed and have been for almost 5 yrs with a turn over about $110k giving an income approx $50k

Four of the IP's have Low Doc Loans against them but have not been revalued for about 3yrs.

I want to revalue these properties and refinance again with Low Doc loans upto 60% LVR which should give me approx $200k over the 4 IP's and then
use the equity available to purchase another IP approx value $420k

The problem is that almost all banks do not refinace Low doc for Low Doc anymore and those that do almost all want to see BAS statements
showing turnover or profit of $240K for a period of 2 yrs (I am told this will come into effect or very similar due to banking Regulations starting 1/1/11.

Which means future investments will grind to a halt.

There is a further problem of where I want to buy the new IP is in a no go post code for Low Doc loans.
This investment will give a gross return approx 9.5% but the banks dont care about that.

There has to be a way around this.

Thanks

Spooky
 
spooky said:
HI All

I have finally hit the wall with the banks wanting to lend me more money for IP's and I want to know where can I get further loans from or Innovative technique for purchasing?

Here's the details

I have 7 IP's current value approx $2.54mil with various loans againt each property total $1.33mil

PPOR approx Value $550k with $80k as my home loan and $174K of Equity loans

Therefore total portfolio value $3.1mil Total Loans $1.58mil LVR 51%

I am Self employed and have been for almost 5 yrs with a turn over about $110k giving an income approx $50k

Four of the IP's have Low Doc Loans against them but have not been revalued for about 3yrs.

I want to revalue these properties and refinance again with Low Doc loans upto 60% LVR which should give me approx $200k over the 4 IP's and then
use the equity available to purchase another IP approx value $420k

The problem is that almost all banks do not refinace Low doc for Low Doc anymore and those that do almost all want to see BAS statements
showing turnover or profit of $240K for a period of 2 yrs (I am told this will come into effect or very similar due to banking Regulations starting 1/1/11.

Which means future investments will grind to a halt.

There is a further problem of where I want to buy the new IP is in a no go post code for Low Doc loans.
This investment will give a gross return approx 9.5% but the banks dont care about that.

There has to be a way around this.

Thanks

Spooky
Click to expand...

Have you thought about looking at commercial Properties?

equity partner deals etc?
 
It looks to me like your rent will effectively pay your loans. You could consider using a lender that uses the following method of assessing loans:

  • 100% of rent income used
  • Actual repayments on existing debts, i.e. interest only at actual rate
  • Loading on new debts
  • Full doc

On that basis it should service as long as the new loan was small, this is because they assess the new loan P&I at a higher assessment rate. So as long as you just refinance one loan to them it may work. You can go higher than 60% on that property too.

There are still quite a few lenders doing low doc refinance up to 60% with no issues. Borrowing up to 80% is where it gets hard. Speak to a good mortgage broker.
 
Hiya Spooky

Best to go to an ADI lender direct these days if u need to go lo doc, till jan 1 anyways.

Close to impossible for a broker to be able to do a lo doc without BAS, income statements or accountants letter AND stay out of trouble with ASIC.

Id look hard at finding some way to do this on a full doc basis.

ta
rolf
 
hi
this is not advice nor should you use it as any form of investing.
but if you equity lent you porfolio with a developer of say a 3 mil development and they gave you 30% of the profit from the deal and you got that in end product
which on my back of an envelop would be 3 units unencumbent that would assist with getting over your probelm in the short term
the units would be worth about 70% of teh capital put in
yes there is risks and you need to understand the developement and where they are but this is a in principle and no I do not have a developemnt that would suit your requirements as there is alot more involved
but this is a way of using you equity without having to show serviceability at all
and take your profit in end product nice and clean
most of these deals the equity investor is a passive investor so take a back seat in the developemnt and is there to shore up the equity position for a funder
you would do well to look at this
just make sure that the structure is a trust structure and that you are not liable for the loan of the developement fi you find a deal and wish me to look over it thats fine
remember this is not anyform of investing advice as I have no idea of your position or risk and I don't give advice
plus here is the disclaimer
ops it didn't upload
 
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