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What is a real estate?
Thanks for the comments so far guys.
I'm looking the Orlando region, small multifamily arrangements similar to these:
Ideally I'd like to get something bigger like these 30 townhouses for $1.6m but would need to finance a fair bit and don't want the hassle.
If I just want to buy something to live in do I still need to setup an LLC? Or is that more straightforward?
I'd quite happily live in something like this little one bedder on prime Central Park West in Manhattan, it's cheaper than my almost identical size and age apartment in Randwick in Sydney! Ridiculous!http://www.zillow.com/homedetails/485-Central-Park-W-APT-2A-New-York-NY-10025/72534366_zpid/#{scid=hdp-site-map-bubble-address}
Fair enough lads, I guess as long as you're generating enough income to service the debt, and the banks are happy with your LVR's, then it's all good, I'm just uncomfortable with the idea of using debt as a deposit, but each to their own. Play on.
yorknxy wrote:i JUST BROUGHT IT. AND IT'S MY FRIST HOME. i HAVE TO WAITING 6 MONTH. i NEED 50000 FOR HOME IMPORV AND PAY BACK SOME MONEY FOR MY FRIEND.
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Your question is very confusing. You say you own this unit outright, but that you can't get a loan because major lenders won't lend for such a small unit. Then you say you want $50,000 for renovations and to pay back your friend, well sorry to say mate but noone is going to lend you money to pay back a friend, unless you want to try a loan shark.
Are you telling me there is skill involved in borrowing money against the equity in your house and then buying another one? I wouldn't get too carried away there buddy.
Correction – It's how high risk investors operate.
Jamie M wrote:orks wrote:What the hell kind of financial institution lets you use a line of credit as a deposit?It concerns me that someone who structures their own finances like that is out there arranging loans for people.
Pretty standard structure really. Take out a LOC or a seperate IO loan against a PPOR to be used as a deposit towards an investment property. Nice first post Orks…..or are you somebody else?
Ok maybe that is standard practice, it just seems weird to me that you are using debt as a deposit to secure more debt. It's stuff like that that creates asset bubbles.
I'm way more conservative, but have probably been lucky with timing to some extent. Pooled some funds with 3 other acquaintances about 15 years ago and bought 20 acres of land in a coastal town in South Australia, and have been gradually subdividing it every since, using the profits from the initial sales to fund the infrastructure for the next stage. The land was on the edge of an industrial area but only 800m from the beach, and the town has grown way past our land since we bought it.
Jamie M wrote:We had our PPOR re-valued and took out a Line of Credit for $50k. This was used as a deposit for IP#1 and IP#2.
IP#3
In May 2010, we exchange on IP#3. It’s a three-bedroom house in Canberra. The deposit we used was from a Line Of Credit we took out on IP#1 (after renos, we had $40k in equity we could access).We're now on the search for IP#4 which we will use this years tax return as a deposit.
During this time, I've also changed careers and have become a mortgage broker. It just made sense, I enjoy everything property related and now I'm able to help others structure their finances to grow their portfolios.
What the hell kind of financial institution lets you use a line of credit as a deposit?
It concerns me that someone who structures their own finances like that is out there arranging loans for people.
