Hi Steve
In your seminar on obtaining unlimited Finance my take on this was that if you are structured right as a company trust that you are only going garentor on the loan and it goes on your personal income . Hope my understanding of this is correct so far. And that when they check into your name that it comes up how many enquiries and dates when they were made however does not let them know if the loan was accepted or declined. Is it my understanding then when you go for a new loan that you do not disclose the other loans that you have taken out previously. And if this is the case and the loan does go on your personal income you also said that you personally dont earn much so how can you access loans of so much money. I’m Not questioning you but would like to no if my understanding of this is correct as I am about to try and find someone to loan my company money for the first time and I personally have a low income. The 3 properties I have purchased in my own name and therfore the loans are in my name so do I have to disclose this when I am going for a loan as garentor.
Regards RachelDon’t just sit there and say YES BUT. JUST DO IT!
Hi Rachel,
Lets see if I can answer some of your questions.
In your seminar on obtaining unlimited Finance my take on this was that if you are structured right as a company trust that you are only going garentor on the loan and it goes on your personal income.Yep, essentially that’s it.
As for credit record searches and enquiries – I can remember Steve saying once at one of his early seminars that the loans he goes guarantor for don’t appear on his credit record.
Is it my understanding then when you go for a new loan that you do not disclose the other loans that you have taken out previously.Full disclosure is always the best policy. Otherwise, the bank may foreclose on you suddenly down the track.
No doubt you’ll find that you encounter the problem of financier redundancy a couple of times in your investing journey. For example, financier one will give you X many loans, and after that stage they decide you’re a big enough risk. Then you move onto the next financier, until they stop lending you money, then the next.At some point, financiers will begin to think you know what you’re doing. They’ll see that you have 1, 5, 10, 20, 50 properties, and believe you’re a better risk than when you had zero properties and no debt.
Have another read through your copy of WealthGuardian, and think about visiting an accountant and talking to some mortgage brokers about how various structures would work for you. You might be coming across a problem where the 3 properties which you own are diminishing your ability to get finance.
The structure which Steve uses has allowed him to do a whole heap of deals, but as I mentioned earlier, he has gone through the issue of financier redundancy, and moved through various banks and lenders.
The structure also means that Steve personally holds no investing debt (although he does go guarantor). He owns zero properties in his own name, and somehow because of this, banks love him and he still technically qualifies for the FHOG.But the issue for you is developing a structure which suits your investing purposes, and for that you need to examine all aspects of you investing plan and speak to professionals who can help you.
I hope this at least answers one or two of your questions.
Brent
Hi Brent
I notice you said –“As for credit record searches and enquiries – I can remember Steve saying once at one of his early seminars that the loans he goes guarantor for don’t appear on his credit record.”
Are you aware of whether or not this has changed? I know that whenever we’ve gone personal guarantors for a loan to our company/trust structure, it most definitely turns up on our credit history. I’ve spoken to 4 different (very experienced) brokers, and none of them know of financiers who WON’T mark your credit history in this scenario. Even sticking to 80% LVR doesn’t change this.
I know I’ve already pursued this in another thread not too long ago, but I’ve yet to hear from anyone who has done this RECENTLY and not had their credit history marked, particularly above the 80% LVR.
Has anyone done this recently????
Keep smiling
Felicity
No idea Felicity. I guess the only way to find out is to get Steve to send away for his credit report.[
]He does stick to 80% LVR loans though.
The seminar which I was talking about was his original wrap seminar from a couple of years ago (I was listening to the recording recently).
Sorry I can’t help you on this one.
Brent
Hi Brent,
Do you know if Steve’s made a video or audio recording of the seminar last week? And when/if this will be available for purchasing?
Cheers, Leigh
“All the world’s a stage, and you choose the role you want to play on that stage” William ShakespearFelicity,
i dont know the details of the information in the seminar you attended, but i do know this. Whenever a financier performs a credit check on you, either as a primary, secondary borrower or as a guarantor, they are likely to input details such as 1) the purpose of the loan and 2) the amount. This is why it hits your CRAA records. In fact with many of the automated approval systems in banks these days, the system will not proceed without this info or will auto input it directly to CRAA. The LVR does not make any difference – it can be a 10% loan and they will still do a credit check – it is this inquiry that is recorded on your file.
Rachel – i also agree with Brent regarding full disclosure. Guaranteeing a loan effectively means you are responsible for it and as such you need to let a financier know about your total commitments. Not doing so may result in a bank stating you engaged in fraud. ie. you sign a declaration on an application stating that you are telling the truth when in fact you are not.
cheers
toddTodd O’Neill
http://www.meteorpartners.com
‘Move to the next level’
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