We have about $500K worth of property (un-incumbered) at our disposal and no income to support it.
We can access $350K on a no-doc loan but we don't want to rely on our income to support any drawing down.
I understand that if we found a net return above the interest rate it would be 'free money' so to speak
Any suggestions?
Sounds good as long as the properties don't go back in value – otherwise you have lots of equity just sitting there being wasted.
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 Gav,
That's a nice amount of equity to have access to.
If you're interested in creating net positive cash flow for yourselves you could use that to do Joint Ventures with experienced Real Estate Deal-Makers such as my partner and I. We are very experienced at producing this using Wraps as our strategy,having done over 20 of these kind of deals.
Have a look at our website in the signature or email me direct: [email protected]
This is certainly a great way to leverage your equity and produce passive income for yourselves.
Cheers,
TamarHi Gav H
As Tamar mentions above, one way to get a positive return in real estate, without relying on your income, is to consider the "Seller Financing" section of the residential real estate market.
Let's then look at the example of one of our Joint Venture partners. He paid $17,526 to buy a $230,000 house which we have on sold for him using Seller (Vendor) Financing. The house now generates $212 per month positive cashflow for him. He is also getting $97 per month to cover the interest on the $17,526 he's invested.
When we refinance the new purchasers into a traditional loan, in two to three years, he will get somewhere between $14,000 and $15,800 as a gross payout.
Good luck with your research.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi GavH
In this era of rapidly-changing interest rates, you need your return t be tied to (at least) the Cash Rate Target to ensure your income "rides" above the rate at which you are paying for your money.
For further suggestions on HOW to do that with residential real estate, call me. 1300 76 22 25
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