Sound like a case of cross collaterilisation itus.

Certainly does.

Hi Cameron Point taken. Must admit hardly ever do a deal with NAB.Cheers for the update.

Which State are you referring to.If in Qld I can help you there.

I have been involved in raising funds for both our own projects and on behalf of other investors over the last 10 years so am aware of the Managed Investment Requirment 

raddles is correct a residential property cannot be transferred into your SMSF.Certainly you can purchase a resdiential property within the SMSF but not transfer the security in like you can a commercial property or share portfolio. 

GR = Gross Realisation

GR lending is standard practise in the development market.Those lenders that offer this will base the lending on a variety of factors including Directors Assets & Liabilities, income both from within and outside of the project, pre-sales dependant on the number of units in the development and total viability of the project.70% GR should be readily…[Read more]

I am with Alistair i think to many clients run for the cheap internet style loans and then realise down the track that really these organisation dont really service all their investment needs.If you are looking for a loan with a cheap interest rate for your PPOR and never intend to buy again or indeed move or repay the loan some time soon then…[Read more]

Might find it varies if the loan is P & I or interst only.With Anz for example on a P & I loan it is 2.69% but on IO it increases to 3.36%.

Usually over 4 units inline the Banks classify it accordingly.This is not say that it can be financed at residential rates or close to.

CathWhat documentation do you need to give potential investors when raising funds?As a general rule, if you are a public company offering securities for sale (for example shares or debentures) then you must provide a disclosure document of some sort to potential investors.A disclosure document is the broad term used to describe all regulated…[Read more]

No I agree with you.10% is a little high for a Commercial project most of ours are being done around the 8-8.5% so thats a little saving and yes it is an acceptable valuation.I guess as Dane contacted me yesterday with the loan enquiry and gave me all the facts I had a little more insight into the deal that was posted here.I think it is a good buy…[Read more]

LeaYou say you have a client are you a broker ?70% LVR should be a walk in the park. Have done similar deals in the last fortnight.

Not sure either of you have your figures right.Firstly it is a 100% Commercial loan so the interest payable is higher than stated.Secondly the property is managed by the local agent so you need to consider the net rents after the management fee has been deducted.Nowra is a regional town as far as any lender is concerned and with a valuation in e…[Read more]

DaneI have several lenders who will do an 80% 6 pack and will respond to your email i received earlier this morning.Normally we need more than an hour or 2 to come back to you with conditional approval.

Have probably done 45 blocks in Brisbane over the last 10 years everything from a 4 pack to a 24 pack of 1 bedroom units.Currently have a block of 18 going through being 14 x 1 and 4 x 2 bedroom units.There are several pluses the obvious one being profit but remember any substantial renovation means you will attract GST on the sale and currently…[Read more]

Given the size of the funds you are looking to raise I would very careful about breaching the Managed Investments Act.

Check out your appropriate state's Builder's Licensing Authority as they will have the requirements set out.

There are a couple of lenders who will lend against the valuation rather than the purchase price but will be dependant on your Asset position and general over application.