Good Morning,

My name is Chris and I look after a lot of the finance queries for Property Investing.

There are one or two lenders, who are also major lenders that will offer bridging finance for up to 12 months and allow you to complete the servicing based on the end debt only for the new purchase/build, rather than the peak debt of the two properties throughout the bridging period.

These lenders allow you to only make repayment based on the end debt of your new purchase also, while the bridged amount will capitalise interest for up to 12 months, with no repayments required, and the debt is cleared once your existing property has sold and settled.

The bridge loan will have a higher interest rate attached to it, so obviously the sooner you get the existing property sold and settled the better, but if you are looking at building, you will more than likely be looking at almost 12 months.

There are a couple of strict prerequisites for this type of lending which are not often discussed beforehand, particularly that the bridging period is a strict 365 day period, which then can have some consequences, so you need to make sure this is the type of lending that will fit your situation.

If you would like to discuss in more depth, or have any further questions I can assist with, please feel free to give me a call on 0477 212 840 or my email address is [email protected].

Hi Striker,

I hope you are having a good weekend.

Im actually a mortgage broker and look after the queries relating to finance for Steve and the Property Investing members.

I just want to confirm we are on the same page. You are looking to borrow 100% plus costs as well as the interest being capitalised and then repaying the outstanding debt from the proceeds of sale without having to contribute any deposit?

I do a lot of construction funding, however if we are looking at mainstream lending, all lenders are going to want interest inly to be paid monthly while the facility is active and while the property is being constructed, and most lenders will not lend more than 90% of the land + construction value for investment lending.

There are non conforming/private lenders who will look at deals based on the finished project basis and will allow all costs to be capitalised and no payments until the property has been sold, however these funders will require 30-40% deposits on the land plus construction value before even being considered. These options are also very expensive requiring an app fee of between 3-5% of the full loan amount as well as charging very high interest rates, of approx 11-16% currently, so this needs to be taken into account also.

If you want to have a more in depth chat about options and what may be available, you can email me at [email protected] OR give me a call on 0477 212 840.

Look forward to hearing from you.

Chris Berry.

• This reply was modified 9 months ago by  Christopher Berry.

Hi John,

I am the in-house broker for property investing and the information you have provided is correct. AMP has recently changed its appetite by only providing any type of trust loan, whether it be a purchase, refinance or increase at an aggregate million-dollar minimum. There are a few other lenders who would be willing to do this deal, however, to submit a loan with another lender, have it approved, and get the refinance completed and funding available, this time of year would most likely take approx 4-6 weeks. Given that you are overseas also, ID verification would need to be completed via your nearest Australian consulate, so just keep this in mind if it’s a few hours worth of travel. The only real short-term fix would be to either apply for another credit card to cover the cost or a personal loan if you could find someone that would be willing to do this for the overseas applicants (within Australia), but I am not aware of anyone who offers this. Not sure if you have the ability to apply locally but the bottom line, whether it is via AMP or another lender, it’s going to take a number of weeks before you see any funding unfortunately.

Thanks Benny

Hi Amelie,

Without seeing the structure of the setup and confirming if the company that owns the properties is trading, it is a bit hard to give you some exact advice on your situation.

If you have the income to support the lending on your own including any income received outside of this company as well as the rental income received from the properties, it would be as simple as the other person being removed as a director/beneficiary from the company and transferring everything into sole ownership in your name, including the outstanding lending. If this doesn’t service, then you may have no other choice but to sell. Everything these days, no matter how much equity or how good things look on paper is done based on incoming vs outgoing. If you cant afford it, then you cant afford it.

Transferring things from a company name to a trust name would most likely be classified as a purchase and would incur full stamp duty also. I don’t think this is really a beneficial thing to consider, but it would be better to speak with a conveyancer just to confirm.

There are other options that can be considered to eliminate the requirement of having to provide income, but these options are generally for people who are self-employed or at least hold an ABN.

If you need some further advice, I do look after all finance/lending for Property Investing and am happy to have a no-obligation chat. My email is [email protected] and my contact is 0477 212 840.

Hope this helps :)

Good Afternoon Pete,

My name is Chris Berry and I am currently the mortgage broker who deals with all leads and referrals for Steve Mcknight and Propertyinvesting.com

I have been in the finance game for about 16 years now and thought I would give you my opinion on the industry.

Being a finance broker and working for myself, I can definitely agree that there is a lot of money to be made, but it can be a slow path to getting to the level where the big money is. Like anything, it depends on how bad you want it and how hard you are willing to work. The hardest part is getting a good knowledge of different situations, scenarios and also understanding the different policies that each lender offers.

It definitely won’t take you 3-5 years to get qualified as there are only two certificates that are required (unless it has changed dramatically in the last 12 months) as well as ongoing training, but you should be able to start writing loans within 3-6 months once you have started receiving your lender accreditations.

I have seen people walk into finance and take 3-5 years before making $100K per annum and I have seen people walk in and do it within 12 months, as mentioned above, if you want it bad enough, you’ll get it.

I was a slow starter because I worked in a very successful business and we weren’t really required to get out and find business as the loan book was built over 15 years and worth about $400M, we were hired as loan writes as opposed to a mortgage broker. Once I left this business, I was excepted to get out and find referrers and ascertain my own business. This was by far the hardest part of my career and took some time to work out how to provide complete strangers with the confidence to let me look after their clients. After 3 years on my own and approx 6 years working for other people, I am finally at a point where the business now comes to me and I don’t really have to do a huge amount of business development.

If you would like to give me a call to have a more in-depth chat, please feel free to give me a call on 0477212840 and you can pick my brain.

Hope this gives you some realistic insight :)