Forum Replies Created
True Mel
What we’re talking about then is a JV scenario as apposed to Mez finance.
The difference lies in the security provided for the funds invested.
The problem I have is that they are advertising as Mez funds with great returns etc. And my concern there is that a novice investor may easily get burned by not being able to ascertain the security provided.
The company in question here in Brisbane offers these great returns and as security provides director’s personal guarentees. On looking more into it we discovered that they had offered the same guarentees on about 5 other projects.
And do you think the director’s will have much in their names?
I think there are going to be a few people burned in the coming months.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by melbear:
Thanks Mel, I understand how Mez deals work.
What I’m saying is, they can get 70% from a senior lender ie bank and 30% from Mez paying 13% interest without using any of their own funds. There is no reason to offer more.
Michael
Have investigated the group mentioned a few months back when they started, and all I can say is be very careful!
The security is not what it seems and they are heavily exposed in the market. Also new to the game.
And borrow more funds from investors than they need, using some of it to pay back your interest! Alarm bells should be ringing now!That’s all I will say before I get in trouble.Do your due diligence and get a good lawyer.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Got a 3 phone, and it has been great for the $99 cap but it is not going to last forever.
Actually got a call from them yesterday saying they’re changing their fair use policy, and now the $99 deal has a limit of $500 so it’s coming down.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi LIzzy
You you still use your own phone and service provider I think, so you can still SMS the usual way, but just use 1 cellnet for the calls and cheap rates.
I think the only extra hassle is phoning into them first and then being connected through.
Might look further into it actually as my mobile phone bill will be huge in a few months.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Clint
Have already gone through this with you, 75% is max, unless I’m missing something here and another broker can get more than 75% for that postcode and an overseas application on your servicibility?
Simon is very experienced here, use him.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Miracle
Typically the larger experienced development companies who can provide a capital guarentee will offer around 12% with a small bonus on completion.
Any company offering 30% or 70% as you mentioned, it will more than likely be a JV scenario where you would profit-share but at the same time, the risk would be shared too.
Generally most experienced developers can borrow funds for around 12-13% from lending organisations, so the obvious question is, why would you offer more if you don’t have to?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]I agree
Just because you have an IO loan doesn’t mean you cannot pay off the principle, you are only obliged to pay the interest component each month.
Hence more flexiblity if you need a few months of reduced payments. This goes for PPOR loans too, with P&I you are reducing the available limit you can redraw back up to so why not keep your available limit as high as possible (and keep increasing with new vals) rather than go back to the bank to ask for a line increase.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Welcome Steve
I have to agree with Michael here and say that you will probably find it difficult to raise funds for projects without a track record and the necessary experience.
I would recommend looking for a mentor instead to learn the ropes first, and if you can find one you can trust there will be deals there for you to do.
I am also here in Brisbane and if you do a few searches you will find some interesting investment groups around to network with.Seems like there are a few people on this forum from Brisvegas, so is there a PI.com meeting group?
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]HI Positive Cashflow
Derek’s advice is spot on, as you should be having a chat to the valuer yourself who will give you a good idea of whether you’re paying too much or not.
Don’t trust your bank to let you know if you’re paying too much for the property, as they will allow you to do it if you have good servicibility.
In other words, take control yourself of the valuation process, it will be a great learning experience.
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Rob
I think while myself and a few others may get your dry sense of humour, it is sometimes very difficult to tell on the forum what is actually meant.
Perhaps a little less ambiguety may make it easier for us to understand your posts.
While not an expert on forum etiquette, I also think your posts are sometimes a bit too much on the advertising your business side don’t you feel?
Just my 2cents, as it getting a bit heated here, and it seems the original point topic has been lost.
Resi have won numerous awards over the last few years indicating their product is good, at the same time while not having dealt with them myself, there have been numerous reports on their inconsistent customer service.
As far as I know Resi don’t use brokers(correct me if I’m wrong) so perhaps approaching them yourself might be the best answer Marisa.
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]I’m not sure what the forum was like a few months ago as I’ve only been on here for that time, but you only have to look at the recent posts in the finance forum to see it’s getting pretty heated at the moment.
This is a great site for information shared by some pretty clued up people and I can say my education has accellarated a lot quicker due to finding it.
Hopefully those sophisticated, experienced investors who regularly share their knowledge on here are not pushed out by all the aggression around at the moment.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Colin
And Welcome.
This is a pretty general question, so why not do a search on trust structures etc. and you will find some good reading.
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Lister
Just my 2cents but I agree with Rob that you will achieve a better price when the property is completed simply because it is the owner occupiers who see the finished product and get emotional about the property, which is difficult to do off-the-plan as not everyone has that type of imagination.
If you don’t have experience selling property I would also suggest using an agent. Be tough and interview a few to find the right one, and don’t scrimp on the marketing costs, as the more people that see the home advertised, the better chance you have.
Also try adding a few little extras in the property to make it stand out from everything else in the street. This may not necessarily cost a lot if you’re creative. Go for good street appeal especially as first impressions count.
Hope this helps, others may add further info, but just my limited experience.
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Just getting myself off the ‘Nelson’ (David Shepherd hopping on one leg).
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Correct
There are a few non-conforming lenders and mortage origination companies (such as ourselves) who offer 100% finance now.
As these loans will require LMI, it will be the mortgage insurers who look very closely at each application, and impose pretty strict conditions.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Why does your mum have to pay double stamp duty? If the friend is onselling to your mother they are responsible for their own portion of the stamp duty.
Why not get a list off the developer of past projects done and check them out? If they are hesitant to provide the info you’ll soon find out.
On another note, if the friend can walk from the deal, then so can the developer. Something to be wary of.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by westan:This site has been fantastic for me also.
before i found this place i had 5 children thanks to PI.com i haven’t had anymore. Thankyou PI.com
westan
That’s hilarious Westan! Do you think Steve Mcknight should market the site as a form of birth control then?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by 1HotValuer:True confessions of a Valuer: I constantly find my self sucked in when I hear peoples life stories and although I try hard to distance myself from life and my profession, I sometimes give people more for their valuations when I feel sorry for them. I need help.Ha ha ha.
Ah yes, valuers are human too! What is your no. 1HOt, I need some new vals done, and I’ve got some sad stories to tell???
Just kidding!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]1. Mezzanine funding
2. Short term lending
3. Robbing a bank (not for everyone)Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Originally posted by The Mortgage Adviser:Brendon,
That sux!
Why did they only do the val the day before settlement?
With your comparables, did they eventually budge on the val?
Rob
No idea, I assumed they would use the same val they used for the purchase a month earlier(or did they even do a val but just charge me for it?)
Valuation firm wouldn’t even return my call after settlement, so I think I would have first hand experience or poor, conservative vals. At the same time though to be balanced I have been able to get some great up-to-the-minute vals from more amiable valuers who were willing to take all info on board.
Just depends on who you get, still not a big fan of the CBA these days though!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]
