How to structure investment loans

Vinny,

There is no exact template to give you.

A lot will depend on your goals and your situation.

Some general things to consider are:

Ownership structure

Interest Only vs PI

Use of Offset rather than redraw

Etc etc

You should probably sit down with an accountant and a broker for some ideas.

All the best

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Vinny, there are unprofessional people in every field. This mortgage broker obviously has no idea. It’s up to the industry to lift the bar. There are some good brokers on this site so if you are ever going to speak with a broker I would call one from this site. Terry, Simon (Mortgage Hunter) and Steven (Mobile Mortgage) are long time contributors and excellent, knowledgeable brokers.

Anyway, here is a series of 3 articles about loan structuring that I wrote for AIP.

http://www.prosolution.com.au/articles/structure.pdf
http://www.prosolution.com.au/articles/structure2.pdf
http://www.prosolution.com.au/articles/structure3.pdf

I hope helps.

Cheers

Stu

hi vinny
before I start I will tell you don’t email me.

yes there are unfortunately bad brokers but in my case I was with one of my investors that is a developer in her own right and she was in a hole toi the turn of negative $480,000.00 on one of her sites with no lender going to lend and after 6 hrs of using my calculator and laptop and organising different funding strategys
I structured it in away that she should build is financing thru nab and they are not the easiest lender in the world as a few brokers here will tell you.and she will be holding a unit as profit and will come out with $250,00 on top in profit.
and I don’t charge her but she buys into my system so I help out were I can.
This may seem like I am doing something extra this is not the case as I think most brokers on this forum including the ones that have already been mentioned, if they new all the facts as I ended up knowing should have been able to do this deal.
so you shouldn’t paint all brokers with the same brush and try another one.
agian I don’t broker out side my own client base and I am not the type of broker that you will be requiring.

here to help

Vinny

I agree with Richard & Simon and always tell people to get a couple of opinions / options before structuring any loan facility. There are good and bad brokers out there – and the long timers here I feel definately know what they are talking about! Some and certainly not all brokers are only in it to get you settled as quickly as possible, make their money then move on to the next deal.

Good Luck!

Get your money working for you instead of a bank! You could earn up to 3% PER MONTH on your money. Ask me how!

That is quite unusual these days – I don’t know any brokers charging like that.

Some do charge a $200 fee that is refunded on settlement to make up for all the work wasted when clients don’t go ahead but most, like myself and others here, charge nothing.

I suggest that you don’t use that broker again unless you feel their service warranted the extra fee.

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Hi Vinny,
As Simon mentioned, your goals and situation should dictate your structuring. Also bear in mind, your long term goals and plans probably have an equal, if not more important factor in the decision/s you make in the equation. The excellent brokers on this site such as Steven, Simon, et al would have your future direction in mind when structuring.
Cheers,
Gatsby.

“Sometimes the hardest thing to do in life is often the best thing to do.”