All Topics / Help Needed! / Banks lending approach to flips

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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of 4141915541419155
    Participant
    @41419155
    Join Date: 2008
    Post Count: 33
    July 2, 2008 - 1:35 pm

    i am going to start investing and need some capital fast so i decided that flips would be a good idea to get cash quick, in order to gain some capital and get my portfolio on the way. however there is still one thing that eludes me when it comes to flips.

    Consider the scenario bellow:

    you have bought the house and have an agreement to sell the house. the time comes when you must pay the money for the house you bough … but you are still waiting on the person who has bought the house off you to settle the amount. how do you approach a bank in this cases? what is there stance on the issue seeming you have a guaranteed settlement and you are only temporarily short of money.

    thanks for any help on this subject. i hope it wasn't to convoluted.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 3, 2008 - 7:51 am

    Your standard banking lender will not want to touch it if it is a short term loan however there are specialist lenders who do nothing else but this sort of deal.

    Remember in most cases as they do not ask for any income evidence and merely rely on the valuation and your sale contract your LVR will be limited to circa 80% max and your annualised rate will be high.

    Richard Taylor | Australia's leading private lender

    Profile photo of Shaun M SmithShaun M Smith
    Member
    @shaun-m-smith
    Join Date: 2008
    Post Count: 18
    July 3, 2008 - 10:11 am

    Be careful. Short term funds can be very expensive. Particularly in the current market.   

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 3, 2008 - 11:25 am

    I can give you the name and contact numbers of a couple of people we use for flips feel free to drop me an email.

    Richard Taylor | Australia's leading private lender

    Profile photo of ScampScamp
    Member
    @scamp
    Join Date: 2008
    Post Count: 297
    July 3, 2008 - 12:33 pm

    A flip… in this market. Please don't resort to crime after you go bankrupt.

    Profile photo of davidcballdavidcball
    Member
    @davidcball
    Join Date: 2008
    Post Count: 19
    July 4, 2008 - 1:49 am
    Scamp wrote:
    A flip… in this market. Please don't resort to crime after you go bankrupt.

    Scamp my theory is that you are actually a very unsuccessful property investor who is envious of other peoples ambition, posing as a knowledgeable investor  If i am mistaken and you are actually trying to give genuine advice why don't you use a little more tact than your comments above.

    Profile photo of Jon ChownJon Chown
    Member
    @jon-chown
    Join Date: 2007
    Post Count: 254
    July 4, 2008 - 2:30 am

    David,   Just put it on the ignore list, anyone well intended would at the very least accept messages and post under their real name.   Check out the profile.

    I'm not suggesting that the comments are right or wrong but wonder if we can expect any messages when the market changes and what they will be.  

    Jon

    Profile photo of 4141915541419155
    Participant
    @41419155
    Join Date: 2008
    Post Count: 33
    July 4, 2008 - 8:52 am

    thanks everyone for your advice. it has been of great help.

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