- syeeMember@syeeJoin Date: 2007Post Count: 7
Have a great deal but don't know how to capture the deal. Being offered a house and land package that is of 15% below market price but don't know what's the best way to get the loan? Have asked but bank will only loan the contract price and not the valuation price. Anyone know how i can get the banks to loan me the valuation price? Anyone has any good suggestions in tackling this deal?lianeismeMember@lianeismeJoin Date: 2006Post Count: 2
Hello happy to help you,
I have my own finance company, lots of clients that buy assets like this, I will explain one way for you to go there are numerous other ways I will not go into on line.
Have the property you live in re valued get a split line of credit use the equity from the split to make up the difference to purchase price. Borrow 80% investment only for new purchase no LMI on full doc
you have now borrowed 100%syeeMember@syeeJoin Date: 2007Post Count: 7
Could i have the name and phone number of your finance company?Kiwi-FullaMember@kiwi-fullaJoin Date: 2002Post Count: 371
I would do this….
ONLY If you are certain of the discount is REAL!!!!!
Get the property locked up with a deposit bond and negotiate a 6-12 month settlement.
with access to do renovations if necessary…. then get it financed on the new valuation in six months…. or sooner if you can prove a very significant rise in value by your efforts…..
you can also get capitalised loans that have higher in and out costs and interest…. but if you have good profits in the deal … then the short term high cost finance is just a business cost to get hte deal done.
ShaneTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
What LVR do you need? If it is high, then you will not get finance on valuation.
One way around this is to pay cash and then get finance. (use cash, LOC or family etc)
Or just accept the lower loan and increase immediately after settlement. I had a client do this recently. He purchased for $395,000 and within one month had the place valued at $445,000 and increase his loan. 3 months later it was revalued $475,000 and he increased the loan again.