[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

November 19, 2013 - 11:41 pm

Thanks Guys for your feedback! Heading up there this weekend to have a look at a few properties but also to get a feel for the area. Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 22, 2012 - 5:11 am

Hi Mike,

Thank you for sending thoses reports! Really helped me out in the end

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

June 21, 2012 - 11:44 pm

Thanks NHG,

I'll have a look at the website for some info.

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

August 31, 2011 - 1:48 am

Thanks for the Reports Mike,

They are a great help and very much appreciated

Carlo

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 10, 2011 - 9:43 am

Thanks Terry!!

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 10, 2011 - 9:28 am

Hi guys!

Now I getting a better understanding!

Thanks guys for your time as always!

Carlito

PS Terry what part of the deed did you have thoses terms- under what heading?

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 10, 2011 - 6:03 am

Hi Terry,

Thanks for your response.

How is it dealt though when withdrawing funds from the trust when you have gifted the money to it instead or loaning it?

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 8, 2011 - 4:47 am

Thanks Terry for everything

Until next time

Take care

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 8, 2011 - 4:28 am

Ok so it's not returnable but a loan is,

1. The trust should pay its own loans. If it hasn't got enough cash to do so it could borrow from you, or you could gift. Don't forget you are not the trust and the trust is not you. so you shouldn't be paying from personal to trust etc as this would look like there is not trust in existance.

Like you have mentioned above, I guess you would have to to always transfer funds across to the trust on a montly bases. In many cases the interest repayments are higher then the rental coming in so you would have to make sure the difference is covered each month.  

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 8, 2011 - 4:00 am

Hi Terry,

Thanks for your advice, you've made it much more clear now.

Can I ask you what the difference is between lending the money to the trust and gifting the money to it? Like you said you don't have to charge interest on a gift but is that all? 

I guess you can still lend the money to the trust –  just make it a interest free loan.

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 8, 2011 - 3:32 am

Hi Terry,

So if Im getting charged interest then I should charge the trust the same amount back but If I'm not getting charged interest due to have  the cash then the trust shouldn't either? do you agree?

My aim is to buy property through the trust, so let's say I had the 20% which I lend to the trust and the 80% the trust borrows under the trust name:

1. Do the interest payments from the 80% loan from the trust need to be deducted from the trust bank account or can it come out of my normal trading account each month? I know that the rental payments must go into the trust account and from there you can transfer it out.

2. If the trust loan (80% of the purchase price) was for let's say 100,000 and I made a payment towards it of 50,000 to reduce the loan  to 50,000. Does this mean that what the trust already owed previously has now gone up an extra 50,000 due to reducing the loan for it?

Loan to Trust 10,000 previous
Loan to Trust 60,000 now

Trust property loan down to 50,000 on the books.

You wouldn't charge interest to the trust on the 50,000 which helped reduce the loan?

Sorry about all the questions Terry just getting a better understanding before going ahead.

Thanks

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 8, 2011 - 2:00 am

Hi Terry,

If I can charge any interest rate then what's the benchmark rate mean?

When does this apply? Is it only when lending money from company to another company? bit confused.

In regards to claiming the interest, if the trust makes a profit and get distributed to the beneficiaries lets say my wife and I which then gets added to our gross income – can i then claim the interest on the money I borrowed against my income? is it possible?

Carlo

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

July 8, 2011 - 1:36 am

Hi Terry,

I was hoping that you would respond – thanks!

So Terry your saying that I should charge the trust interest – but at the same rate which I'm paying so it cancels each other out?

If the money I've given the trust wasn't borrowed then would you still have the trust pay interest back to you? This will then become income to me and the trust will take up the expense?

Thanks

Carlo

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

March 1, 2010 - 1:58 am

Richard,

Can I ask you how would you restruture the deal/deals going forward as per your comments previously about restructuring my deal and starting a fresh?

Thanks again

Carlito

You have a free Residex Property Report, can I email you to receive a copy?

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

February 28, 2010 - 10:22 am

Ok Terry I'll look into it

Thanks once again.

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

February 28, 2010 - 10:17 am

Thanks YI for your comments!

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

February 28, 2010 - 10:14 am

Thanks Terryw thats makes sence and gives me better understanding.

I'll have to buy you a drink or two!!!

Can I ask you should I set up an family trust before I buy my next IP? I'm not sure if do I or don't need it.

What do you recommend or is this more of a tax issue?

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

February 28, 2010 - 10:03 am

Qlds007 wrote:

From what you have written you will use up your equity fairly quickly so if you intend to keep on going I would look at restructuring the deal and starting a fresh.

Course may not be possible depending on how you are holding the Com property but it would certainly be cleaner for you

Richard,

Can i ask you how would you restruture the deal/deals going forward?

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

February 28, 2010 - 9:58 am

Thanks Terryw for your response.

Can I ask why would you put your rent into an offset account instead of putting it directly onto the IP loan? Lets say the IP loan had redraw facility. Any reason for this?

Thanks

Carlito

[CarlitoParticipant@carlitoJoin Date: 2010Post Count: 31]

February 28, 2010 - 3:18 am

Can I stick to this method and keep buying IP's without hitting a brick wall in the future? The LOC I'll obtain from my current bank but with the 80% new loan I will source from another lender.Is this ok? Or should I stick to one lender? Should I have an offset account and to which one? (LOC or New Loan). Lastly, should the LOC have the ability to be split or is there no need for this? eg buying 2 properties at differenct times from the one LOC – should this be split.

Thanks guys for your input.

I've learnt alot from your comments.

Your thoughts

Carlito