Critique The Plan & Help

Viewing 7 posts - 1 through 7 (of 7 total)

kattan
Member
@kattan
Join Date: 2003
Post Count: 31
September 4, 2003 - 1:29 pm
Hi all,
This is my Plan in a nutshell:
Identify block of land with DA for 2 villa units. Build one and sell (there is some money to be made in subdivision without depending on Capital growth).
Build the next and keep(hold strategy).
I want to continue to do this over and over.
I have done some home work on this concept and think it is worth doing; However:
1.Pl take a look at the Plan and take it apart; any flaws, pitfalls that you can think of will be appreciated.
2. I have recently moved to Melbourne (W.Suburbs) and need a Mortgage Lender/Home loan person (local) who is “switched on” and can handle similar deals; someone who can guide me so that I dont max out on the 1st deal.
3. Would also appreciate any suggestions for dependable and Accountant, Solicitor, etc. ( I have iddentified the Builder).
Comments/ suggestions/critiques welcome and will be appreciated.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
September 4, 2003 - 1:41 pm
It is worth doing.
The difficulty is finding the block at the right price.
Finance isn’t the issue if the numbers stack up.
Cheers
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 4, 2003 - 1:46 pm
One of our clients is doing this at the moment. it is working really well for him nad has left him with 2 unencumbered properties. he hasn’t finished yet and will be very Rich when he does.
As long as you have a good margin in there you will not max out.
Terryw
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
kattan
Member
@kattan
Join Date: 2003
Post Count: 31
September 5, 2003 - 1:26 am
Thanks for the comments guys.
Any suggestions from anyone on the issue of dependable, “switched on” Mortgage lenders, Solicitors and Accountants in Melbourne (West suburbs preferable but not essential). would prefer to deal with someone you guys have dealt with before and would recommend.
Thanks in advance
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
September 5, 2003 - 1:35 am
I strongly recommend Kristine.
0411 525 565
We are not associated in any business sense and I will receive no kickbacks. I have just found her to be a very friendly, experienced and capable broker. Ask her about her property development experience.
Good luck,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
Stuart Wemyss
Member
@stuart-wemyss
Join Date: 2003
Post Count: 598
September 5, 2003 - 3:01 am
There are a lot of lenders that will look at doing this. Some don’t require any proof of income and some will give really good deals with full proof (low rates and fees). It really depends on the quality of the development.
Some considerations will be:
– Amount of your equity.
– Location and type of development.
– Builder reputation.
– Estimated profit.
– Existences of any pre-sales.
– Financial projections (and how tight they are).
You can capitalise interest during construction and can borrow against end value.
You can normally borrow 70%/80% of land value (with permits) and hard construction costs or 70% of end value.
In addition, it’s easier to get these deals set if you’re borrowing over $500k. Not many lenders like the smaller deals.
Hope that helps.
Cheers
Stu
http://www.prosolution.com.au
shanebal
Member
@shanebal
Join Date: 2003
Post Count: 16
September 5, 2003 - 7:17 am
Howdy,
Interested in doing a similar thing in QLD.
Have 2 blocks and would like to chat to someone who has done this up in the Gympie/Sunshine Coast area.
Regards,
Shane