All Topics / Help Needed! / help needed today desperatly

Viewing 20 posts - 1 through 20 (of 23 total)
  • Profile photo of Patrick van lieshoutPatrick van lieshout
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    @patrick-van-lieshout
    Join Date: 2011
    Post Count: 1

    hello can any experienced investor ring me,I have found a positive cash flow property 16.8% cash on cash return potential for 25.1 cash on cash return don,t have a trust set up yet need to know my options though i have a vague idea,will give $$$ for right advice,advice needed urgently,call Patrick 0437288863 posted 1020 hours 30/12/12 WA time

       Help me please

    Profile photo of TerrywTerryw
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    @terryw
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    Slow down.

    Just because you have found a cashflow positive property doesn't mean it is a good deal.

    What do you need to know? You shouldn't be signing any contracts before talking to a solicitor (and not an annonymous caller). If you don't have a trust set up before you sign then you will be charged double stamp duty in WA if you sign and later put it in the name of a trustee.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of DerekDerek
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    @derek
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    Hi Patrick,

    Agree with Terry – need to look beyond cashflow and look at the fundamentals of the area too.

    Being end of year and start of a new year chances are the property will not be snapped up overnight. Sometimes you need to pause before rushing into something half prepared.

    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
    Post Count: 1,099

    Slow right down buddy….finding +ve is not like winning lotto!!

    Patrick – what do you actually what to know?

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of DHCPDHCP
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    @dhcp
    Join Date: 2010
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    Before anyone gazump you, put an offer on the property preferrably put a small deposit and if accepted, get them to take the property out of the market before it disappears out of your sight.

    Then, do your due dilligence (e.g. building inspection, pest control etc). Also, talk to your silicitor to put the property under a trust name for asset protection…. structure it well. Then, speak to your mortgage broker if you have already pre approved mortgage by a bank….and see what's your LVR from your lender. Some Lenders can loan you up to 90% of the value of the property.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Must admit i am not aware of any lender that wiill lend 90% of the valuation.

    90% of the purchase price / valuation whichever is the lower i would agree/

    Cheers

    Yours in Finance 

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

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of DHCPDHCP
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    @dhcp
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    ANZ, ING etc are some of the lenders that will lend up to 90% of the market value of the property… in Bull market Lenders will lend up to 95% of the value of the property, in Bear market, they are more cautious…

    Profile photo of TerrywTerryw
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    @terryw
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    DHCP wrote:
    Before anyone gazump you, put an offer on the property preferrably put a small deposit and if accepted, get them to take the property out of the market before it disappears out of your sight.

    Then, do your due dilligence (e.g. building inspection, pest control etc). Also, talk to your silicitor to put the property under a trust name for asset protection…. structure it well. Then, speak to your mortgage broker if you have already pre approved mortgage by a bank….and see what's your LVR from your lender. Some Lenders can loan you up to 90% of the value of the property.

    To prevent gazumping you would need to enter into a contract. And to avoid paying stamp duty twice you would also need to have the entity established before entering  contract in most states, inclduing, I think WA.

    So becareful in following this advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of DHCPDHCP
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    @dhcp
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    Terryw wrote:

    To prevent gazumping you would need to enter into a contract. And to avoid paying stamp duty twice you would also need to have the entity established before entering  contract in most states, inclduing, I think WA.

    So becareful in following this advice.
    [/quote]

    You have to read between the line……..once the offer is accepted (e.g., either in writing or verbal), get a copy of the contract then forward it to your solicitor. Again  read between the line…..structure it well (e.g., place the property under a trust not personal name).

    For Christ sake, the guy need some valuable advice, all you monkeys telling him WHAT NOT TO DO instead of WHAT TO DO…

    He wouldn't be posting here if he didn't need a help….get it!!!!

    Profile photo of TerrywTerryw
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    That is what I would suggest, but it won't prevent gazumping.

    Start negotiation, set up a trust, and then enter the contract – if the property is still available.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of DHCPDHCP
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    @dhcp
    Join Date: 2010
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    If you tell the vendor to take it out of the market while you are under contract it will prevent you from getting gazump..that's how I bought several properties.

    Profile photo of TerrywTerryw
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    @terryw
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    You can tell the lender to do anytihng, but they won't be contractually bound so they can sell to another even if they take it off the market. They may keep it for you or may not.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Sorry DHCP

    That is simply not correct.

    Neither lender you mention will lend against valuation irrespective of the purchase price.
    It doesnt make any difference whether it is a bull or bear market.

    If you have a look at the Credit policies of both Banks and in fact all lenders it clearly states "purchase price or valuation whichever is the lower".

    There is nothing to stop you refinancing after settlement and if you feel you can get the valuation increased borrowing upto that amount (subject to mortgage approval).

    The only time lenders will lend against valuation is where the property has been purchased off the plan and the contract is dated more than 12 months prior to Settlement. 

    Cheers

    Yours in Finance

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

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of DHCPDHCP
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    @dhcp
    Join Date: 2010
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    @richard, i'm more referring to the valuation of the property by the Bank…typically, lenders will lend you 80-90 percent of their valuation of the property, in their own mind, that's how much the value of the propety….but of course, the market will might have a higher value…….you know from your prefession, Banks are conservative in valuation and in lending.

    @terry, you're rigth, the vendor can do anthing but if they are desparate (BTW i only buy from desparate vendors), they are happy to obliged. I never buy any property if the vendor is not motivated from experience very easy to deal with motivated seller.

    Profile photo of crustycrusty
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    DHCP wrote:
    If you tell the vendor to take it out of the market while you are under contract it will prevent you from getting gazump..that's how I bought several properties.

                  NO  IT WONT.          You can sign the the contract, the vendor can tell you anything, say he is despperate to sell and wants to sell  asap .  but until he signs the contract he can sell it  to who ever he wants for whatever he wants.   This happened  to me  after wasting 2 days getting unconditionl finance  and twisting bank managers  arm  paid the deposite  signed a   contract , the vendor wanted it  signed and in 2 days or the property  would go on  the market.    After weeks of excuses and BS why the sale wasnt progreessing.  I get a phone call saying they wanted more money as they had a higher offer.   This was through a high profile BA  one of  staff was disgusted and told me the propery was still being shown to other buyers.   Yet this  even happened by an agent that was  supposed to represent my interest.        Once the  vendor signs the contract  he can still market the property and they often do  til after settlement is complete. What they say and what they can do are completly differnt. Also I have found the ANZ by far the most difficult bank to get a loan from even with very low LVRs. They did have tnhe toughest lending criteria.

    Profile photo of DHCPDHCP
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    crusty wrote:
    DHCP wrote:

                  they wanted more money as they had a higher offer. .

    Learn from investors who've gone before us…deal with motivated seller only. I've used that strategy to all my purchases and it worked all the time.  So what's a motivated vendor? Seller that is going through divorce, move to different state quickly or overseas for job, financially distress etc., etc., etc.,

    They wanted more money because, you dealt with NON motivated vendor – you broke the basic rule.

    Guess what? They GAZUMPED You !!!! Learned your lesson?

    Profile photo of EPI_DenEPI_Den
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    @epi_den
    Join Date: 2010
    Post Count: 71

    Hi Patrick,

    I think there are a couple of things you need to sort out:

    Who is your solicitor / conveyancer? Get them to look over the paperwork, and do it fast!
    How much do you have and how much can you loan? Will this cover the cost property as well as purchasing costs?
    How long is the cooling off period? You might be able to use this to your advantage if your offer is accepted and you need to do some FAST research.
    What is the location of this property? Does it have solid fundamentals or is it a single-industry area which might bust in two years’ time, thus leaving you with a considerable debt and a property that nobody wants in a ghost town?
    Do you trust the figures you’ve been given? If so, then wouldn’t you want to check them again (we have a free cash-flow calculator on our website)?
    Is there already a tenant? If so, how long for? If not, what’s the demand like in that area?
    Have you spoken to a lawyer or accountant regarding the best entity to purchase such a property in?

    I’m worried that you’ve seen what could be a great buy (or it could be a good-looking stinker!) and you’re jumping in too fast. Take a few of these steps, get yourself some advice (read through this forum, listen to some podcasts – there are lots of free ones, ask some experts) and then make a cool-headed decision.

    And finally, the guys who have responded to your thread may seem like they’re arguing, but they ALL have the best intentions with their advice for you (from what I can tell). Yes, you need to get the seller to sign the contract so you can’t be gazumped; yes, different banks will only loan so much. Advice, as well-intentioned as it is, can be conflicting. Make sure you read different points of view and develop a good understanding of property investment before you buy.

    Good luck!
    Den

    Profile photo of crustycrusty
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    DHCP wrote:
    crusty wrote:
    DHCP wrote:

                  they wanted more money as they had a higher offer. .

    Learn from investors who've gone before us…deal with motivated seller only. I've used that strategy to all my purchases and it worked all the time.  So what's a motivated vendor? Seller that is going through divorce, move to different state quickly or overseas for job, financially distress etc., etc., etc.,

    They wanted more money because, you dealt with NON motivated vendor – you broke the basic rule.

    Guess what? They GAZUMPED You !!!! Learned your lesson?

    Yep THe lesson learnt was that just because the vendor was motivated and is in a dire predicament that meant he had to get a placement in a nursing home pronto doesnt prevent you being gazumped while all the necessary papper work is being processed , or trying to be found ,and promises and words mean nothing. The other lesson learnt was only deal with the vendor even if he is on his death bed and never with a solicitor.   Your are knaive if you think motivated seller always means motivated seller,   It is real estate speak for lets motivate a buyer for an inferior property that maybe diifficult to sell.     Just as cozy or renovators delight is.      You are excluding yourself from most of the best properties if you only look at properties where ethey need gimmicks to motivate buyers.   A good property will usually sell quickly anyway.   A property should be bought on its merits, not because it is cheap. A motivated seller will only sell about 10k under realistic value any way, it is neither you arse nor your elbow in terms of buyiny property.    Guess what the reason nearly every propery sells is because of  divorce or because the owner is moving, I have bought many for that reason,usally at a  whim,  but I let them sweat for a few months  and buy if I am still interested a fter a few months if they still want to accept my offer.    Even tho they are motivated they wont let on if they know they have a quality property  because they know the buyer wont offer as much.     When I am serious I build my own it cheaper .   One more thing you might care to remember there are no rules, as every circumstance is different.    I dont blindly follow those the have gone before .  The ones who do well dont say much.  The want to be, who cant tell others how to.    What worked one year wont neccessarily work the next  every situation is different.  I dont give a  toss what others have done.   Ive done it  my way ,  perhaps it could have been done better, but I dont care I done it the way  I want and have done better than most by being contrarian. In fact all the places doing well now  with high yeilds and high CG  are where all the experts ad nausem tell you not to buy.

    Profile photo of TerrywTerryw
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    @terryw
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    If I was a motivated seller I would accept whoever signed an unconditional contract first with the price I wanted. I wouldn't care if they were a motivated investor or it would mean going with someone who had just made an offer.

    Even if I wasn't motivated, I would still do the same. A sale is only a sale if the contract is exchanged without conditions (or when those conditions are fullfilled). Actually a sale is really only a sale when it settles and the cheques have cleared because some do not settle.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of DHCPDHCP
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    @dhcp
    Join Date: 2010
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