Hi,
If you've run out of equity/cash and you still want to buy property (the repayments are not a problem) the question arises: "Where can u get the 20% needed by the banks so that they will cough up the other 80%"?
In pondering this I guess there are Solicitors funds where you will pay an extra 3 or 4 % on top of the Bank rates. But since I'm thinking for a short term like 12-18 months even if that is $200K over a year then that is cheap, if the money can be made at the end of the project. It would cost say $20K vs 12K (from a bank) so the difference would be 8K, but that would allow u to get in to the work.
But how do solicitors guard their investment? Do they require a name on the contract of the new property?
Or in these times do you think it better to try and engage the vendor(s) as a partner so that initial purchase price can be delayed for a period whilst construction/reno occurs? ie do a deal with the vendor for "vendor finance".
Are there better/safer ways to get the money? Any threads where this has been discussed already that people know of?
Thx so much,
JB
If you've run out of equity/cash and you still want to buy property (the repayments are not a problem) the question arises: "Where can u get the 20% needed by the banks so that they will cough up the other 80%"?
In pondering this I guess there are Solicitors funds where you will pay an extra 3 or 4 % on top of the Bank rates. But since I'm thinking for a short term like 12-18 months even if that is $200K over a year then that is cheap, if the money can be made at the end of the project. It would cost say $20K vs 12K (from a bank) so the difference would be 8K, but that would allow u to get in to the work.
But how do solicitors guard their investment? Do they require a name on the contract of the new property?
Or in these times do you think it better to try and engage the vendor(s) as a partner so that initial purchase price can be delayed for a period whilst construction/reno occurs? ie do a deal with the vendor for "vendor finance".
Are there better/safer ways to get the money? Any threads where this has been discussed already that people know of?
Thx so much,
JB