Forum Replies Created
Polaris
You would be mainly marketing to people who can not qualify for bank finance.
I can see the potential of Sandwich lease options!
Terryw
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Matthew
I think wrap is a broad term referring to both. At first I couldn’t understand why some people called LOs wraps as well. I don’t think you will find ‘wrap’ used on any legal documents. I think ‘Installment Contract’ or ‘Vendor Terms contract’ would be more accurate for what you refer to as wrap.
Terryw
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Polaris
I think I understand what you are saying? Sometimes these things are difficult to explain in words!
The person selling an option on their property is, I beleive, not doing it because they want to sell it quickly. it will be actually slower than if they just sold it outright. I think they would be doing it because they wanted a higher price and/or they were getting an option fee which they get to keep if the buyer doesn’t take up the option.
Banks will not use future equity from an option as collateral as they would be unable to put a mortgage over it.
If you are doing a sandwich lease option it would be better to target investors that are renting out there property. Maybe they are sick of having a high turn over of tenants, want to sell the property, but can’t find anyone. You come along and say you will buy it for the price they are asking, but can’t pay yet. So you give them a small fee now, and teh rest in say 2 years. In the meantime you will rent the place and pay for everything. That would sound like a good deal to them maybe.
An owner occupier would have to move out and rent elsewhere until you purchased the property and the funds were released to them.
Hope this helps?
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yep. Anything related to the earning of income. Computer, Internet connection (for research etc), study courses, books, street directory, travel to see property or for study or to see accountant etc. Virtually everything!
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Gerard
Mezz is risky and the rates are usually only 15 to 20%. You could make more by investing this in deposits for wraps!
Terryw
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http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Matthew
it is not illegal to wrap using a IO loan. It maybe with an installment contract, but you can certainly do it using a Lease Option. And it can be structured to work just like an installment.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Fullout
CRAA is your credit reference file (i forget what the letters stand for).
You should get a copy of your own file just to see what’s on it. This is what the banks check, every time you apply for credit there will be a record. And any default etc will be listed.
see http://www.baycorp.com.au , You can get a copy for free.
Terryw
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Fullout
If your loan has been submited you will have an inquiry on your CRAA. Not such a bad thing as you could explain it, but still another enquiry!
Have you considered ING, 5 year fixed at 6.29%. Interest Only up to 95% LVR. this is a cheap rate. reverts to standar rate after 5 years. The average 5 year fixed rate is about 6.44% at present.
Heritage BS is low too; only 6.39% 5 yr fixed IO.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Kirby
I am a ortgage broker and had this problem today with a valuation (diff bank). I rang the valuer and talked to him about it. He is going to amend the valuation because the owners had figures for comparable sales to prove he was way off (about 20% off).
This happens occaisionally. Banks are not at fault, it is the valuer that is being conservative as they can be sued if it all goes bad and bank has to sell up customer and then can’t sell the house for what the valuer said.
So you could try to find out the valuer, or get teh bank to ring him and argue the price up. Or if no time, just accept this and apply for an increase about a month later – threaten to refinance if they don’t agree. St George have a good customer retention team whose job it is to keep you there!
Terryw
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Hi Bluebear
That strategy can work. The interest on the money borrowed to live on won’t be claimable, but it can still work. You could withdraw about 80% of the growth of each property per year. eg a $500,000 property grows 10% in year 1, you withdraw $40,000. Year 2, it grows another 10%, you borrow another $40K or so.
It works well if you have a number of properties and draw on one per year, so that gives them time to grow again.
Terryw
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hi Wigboy
Any Solicitor should have option contracts.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I have used ANZ earlier on as they do 95% interest only loans and they allow you to capitalise the mortgage insurance. The problem with ANZ is they are extremly slow. 2 of my settlements went over deadline because of them being late getting docs out etc.
And they did 3 CRAA checks per property (one for pre approval, one when i found someting and one for their mortgage insurers to check). This resulted in 18 enquiries ofr 5 properties. I then applied with Westpac and they rejected me solely on my CRAA-until I explained and they approved me for 2 more.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
hi Willi
What if you have several properties and you had a business of investing in property. Could you then argue that this is an business expense and then cliam the costs associated with travel relating to viewing potential purchases?
Thanks
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Poochi
Don’t sell.Think about all those fees, and then you have to pay rent with after tax dollars. This is you only tax free asset.
You could get a LOW DOC loan easily. This is where you tell the bank what your income is and don’t need to provide proof.
There are also pure asset lends where the lender does not care about income. They will lend a percentage of the value of a property. You can get up to 85% of the value. (You can contact me below for furhter info.)
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Rich one,
There are some shocking mortgage brokers out there. I know because I am a mortgage broker and have seen these people at various bank training sessions.Some of them don’t know much about finance or investing.
You should not be charged more in interest rates or fee by going thru a broker. Some brokers, however, do charge a brokerage fee but this is unusual.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Cloudus
I am located in North Sydney. if you want to chat, give me an email for further details:
Terry Waugh
Discover Home Loans
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You could use a LOC secured on your 1st IP (and another on home too). Use this as deposits for more IPs.
If you use a low doc loan, you could tel hte bank your income without providing any proof. You could buy many properties with your current equity and this could generate a large income!
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Glad to see you have pulled out!
You also have to think about resale value too. these things are hard to sell.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Kumara
You could try:
http://www.acca.com.au/Commisso Bugden Partners
115 Canberra Ave
Griffith ACT 2603
P.O Box 5422,
Kingston ACT 2604Phone: (02) 6260 8881
FAX: (02) 6260 8882
email: [email protected]I don’t know much about them, but Tony Commisso posts on the Freestyler discussion board regarding tax issues.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Russell
We have done a few of these deals recently where the loan obtained was 70% LVR based on the end value of the property.
In your case if they are valued at $135,000 x 15 = $2,025,000, then we could lend 70% of this figure = $1,417,500 (or $94500 per unit).
Terry Waugh
Discover Home Loans
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
