Investment Opportunity 9.85%
Looking for a private investor to pay out a first mortgage.
Property worth approx $750,000 -$810,000. Mornington Victoria. 4 bedroom, 2 bathroom, 2 car garage. Land 700m2
Mortgage $540,000.
Proposal.
To pay out 1st mortgage of $540,000 and receive 9.85% per annum for 2 years. At the end of two years, the property is to be sold or refinanced with the investor to take initial investment plus interest.
For more information please call Dale on 0433 696 299.
Is it an owner occupied property or investment ?
Is the borrowing in your personal name of a Company ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
Thanks for your inquiry.
The property is owned by my wife. We both live in it. My wife has a chronic illness.
The borrowing would be in our personal names.
I’m happy to give you more details on the reason for the sale if required.
Regards.
Dale Greenwood
0433 696 299
Hi Dale
Sorry to hear about your wifes situation.
Borrowing in your personal name means the loan is Coded so would involve any potential lender to undertake a full servicing to ensure the loan was not unsuitable. Also means the lender needs to hold an Australian Credit License.
A Coded loan requires interest payable monthly in arrears and cannot be capitalised.
Ok probably not one for us then. Good luck.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard.
Thank you for the helpful information.
Just before the lockdown, I had two private investors, through a solicitor, that were interested in the proposal. However, when it all hit the fan, they decided to wait for 6 months. (We can’t wait 6 months. The bank wants us to sell or us to move out by July 13th. Moving now with my wife illness and other issues is just not possible hence the proposal.)
During the process, no one mentioned the coded issue.
So to clarify, are you saying that any private investor that wants to pay out the first mortgage and have a first mortgage on the property needs to hold an Australian Credit License and that the load would be coded and that loan requires interest payable monthly in arrears?
Regards.
Dale
All,
Providing a loan sounds easy enough, but if an investor lends to someone for non-investment reasons (including PPOR) then they need to be VERY careful, as you may need a credit provider’s license. See more here: https://asic.gov.au/for-finance-professionals/credit-licensees/do-you-need-a-credit-licence/
Dale, I wish you every success. Perhaps seek some financial counselling if you are in a pinch. There may be other options (such as mortgage relief) that they can help you arrange.
Blessings,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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