All Topics / General Property / Rent Roll Finance

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  • Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Hi all,

    Has anyone had experience with owning a property management?

    Can I expect a lend on a rent roll, with no cash but using home equity put up as part security?

    Regards, Phil

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Luckyphil

    Yes you can. We have financed several over the years. Normally limited to 50% of the value of the rent roll so if you can come up with the balance in equity (Lender will normally go to 80% of your equity) you may have a deal.

    Suggest someone like Anz they can then tell you who they would want to undertake the valuation.

    Cheers Richard
    [email protected]

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day Phil….

    Some of my clients would be interested. My advice to them is that you would be getting a 20% plus return and as such, I consider it a safe investment for them.

    If you wish email me and I will put them in touch with you direct.

    [email protected]

    Cheers

    Billfromoz

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    Quote:
    Thanks Richard,

    Glad ANZ rated a mention, as my PPOR loan is with them. 50% plus equity sounds good to me. Do I understand you correctly that I may achieve an equity loan of 80% over and above the original home loan? OR .. is my borrowing limited to 80% of the value of the house as a new single loan?

    I hope the answer is the former, with 2 seperate loans.

    I plan to see ANZ within the fortnight, but would appreciate a few basics from you before I speak with them.

    Thanks again, Phil

    Hi Luckyphil

    Yes you can. We have financed several over the years. Normally limited to 50% of the value of the rent roll so if you can come up with the balance in equity (Lender will normally go to 80% of your equity) you may have a deal.

    Suggest someone like Anz they can then tell you who they would want to undertake the valuation.

    Cheers Richard
    [email protected]

    There is no such thing as a problem.
    Just a solution waiting to be found

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Hi Bill,

    20% .. I had worked figures closer to 25%, but even a conservative 20% is obviously well worthwhile. Given the low current loan rates makes this even more attractive. Lots of fat to absorb increases.

    I have just been hit over the head with a very simple solution to what was to be my next question. You have just answered it.

    If I understand Richard correctly, I might at best be limited to 30-50 properties. But if 3 or 4 others had a joint interest, we could offer to buy an entire management. AND everyone wins. Control of ownership, proprietor retains management plus gets the big capital injection.

    E-mail is on the way.

    Kind regards, Phil

    quote:


    G’day Phil….

    Some of my clients would be interested. My advice to them is that you would be getting a 20% plus return and as such, I consider it a safe investment for them.

    If you wish email me and I will put them in touch with you direct.

    [email protected]

    Cheers

    Billfromoz


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