Forums / Getting Technical / Finance / O/S Property Financing Options

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  • Profile photo of itchyfeetitchyfeet
    Member
    @itchyfeet
    Join Date: 2004
    Post Count: 12

    Hi,

    I currently ‘own’ 6 properties in 3 countries. These properties were all purchased through resident trusts, funded by borrowing money in each respective country, supplemented by my own cash/equity here in Aus. I now have a large number of excellent opportunities (15%-20% yields) O/S but insufficient equity here in Aus to continue to fund the balance.

    What financing options are available to me here in Aus to help purchase these O/S properties? I could offer a second mortgage over the properties as security but I doubt any lending institutions here would accept this. I would also consider money partners but this is not my preferred option and I am not sure how to go about finding them anyway!

    Any assistance would be most appreciated.

    Cheers,

    Ben

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi itchyfeet
    I will give this view but it not as a main steam type of lending as yours is relatively specific and you need to check it out.
    you need to talk to a international bank like hsbc, deuch, bank of china head office, and get to talk to a commercial banker.
    as long as they deal in that market they will setup a commercial lending account and will then link the properties and the loans to that commercial account.
    this is not cheap to do.
    the other is to do the same as above but you take the loan out in each country and get each country to link the account that have money in them.
    this is easier but you will only be able to lend on the credit in the account not equity.
    commercial banking is alot different the normal banking and the rules are very different.
    the last and the cheapest (but the properties must be worth it) is to get a commercial lend for a value that takes in all the properies there are commercial banks that will do this and do it in batches or chunks usually 10mil, 50mil 100 mil
    if you are not talking these values then forget it and the above is of no use to you and no you can’t us external equity to purchase.
    if they are with in those values then any of the asia main lenders will talk to you.
    my .002

    here to help
    If you want to get involved in some of the projects I’m involved in email to [email protected]

    Profile photo of itchyfeetitchyfeet
    Member
    @itchyfeet
    Join Date: 2004
    Post Count: 12

    Thanks for the info Grossrealisation – I will check out the options you mentioned.

    Cheers,

    ItchyFeet

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    Which Countries are you referring to?

    Richard Taylor
    Residential & Commercial Finance Broker
    **Lodoc Commercial loans from 7.39%**
    Licensed Financial Planner
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of itchyfeetitchyfeet
    Member
    @itchyfeet
    Join Date: 2004
    Post Count: 12

    Hi Richard,

    The properties are located in one of the Pacific Islands.

    Regards,

    ItchyFeet

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