Hi I have just joined this site after reading Steves book reading this has made realise I need to keep moving foreward however according to my bank I cant borrow any more cash to take my investing to the next levil so I need some advice on how to move foreward and keep building my property portfolio any advice from people who have been there done that woul be greatley appreciated. Here is my situation as it stands three investment properties, property one value 400k loan of 138k P&I rented for 310PW property two value 420k loan of 420k IO rent 400PW in three months time(its still being built) property three value 355k loan of 355k IO rented for 350PW.My current income is over 120k PA so servicibility should not be an issue I think
Thanks in advance for any advice or ideas.
MackkaHi Mackka
Firstly welcome to the forum and I hope you enjoy your time with us.
Look i hate to say you appear to have made the cardinal sin that a lot of property investors make and that is you have cross collateralised your securities and hence the pot is not dry.
This happens oh so often and even this afternoon i received an enquiry from another forum member in the same boat as you. We are going to start to unravel his lending mess to enable him to go forward on his investment adventure.
What you have to realise is that ever lender has a different policy when it comes to serviceability and also an appertite for investment risk. Some lenders are pro investors loans (with credit policy that are attractive to investors) and others are not.
Look with a little more hard data I am sure we could get around your current problem but firstly you need to restructure your loans and set them up in such a way that they work for you and not for your bank / lender.
Drop me a line if you would like me to look over them further or assist in the untangling of what is looking like a security mess.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mackka,
Definately step back to move forward – grab Richard's offer and review your current structure.
While you are at it you may find there are other 'better' lenders out there for you and your situation.
Thanks so much for the help I have e-mailed Richard I hope he can sort this.
MackkaHi Mackka,
Out of curiousity – were your loans done by a bank or a broker?
My experience and that of others I have worked with over a number of years is that banks are very certainly looking after their interests. As an investor I recommend getting a good broker on your team and if you 'must' work with a bank make sure you know what you want and what the bank is proposing.
HI Macka
Just to let you know as at 11.35am Qld time i havent received your email.
Happy to respond as soon as i do. Email address is as below.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Derek
Yes my investment loans were set up by a broker the company I went through did what was supposed to be the package all orginised I told them my future plans etc but they havent given me what I wanted a lesson learnt I guess this would have been a easy loan for them to set up .
MackkaHi Mackka,
Therein lies a problem – not all experts are created equal and sometimes differentiating between the two is a challenge in itself.
Pretty important your broker is also a property investor too. Be wary of those branded mortgage broking companies – some of them are really just loan wirters.
Bit like those multi-national tax return companies. Yes they can do a tax return. But can they look after your tax affairs, probably not.
Hi Derek
Thanks for the advice and tips I have spoken to Richard Taylor and he seems to think he can sort the mess out for me I jhave just spoken with the loans manager at my local bank and he reckons it cant be done I think it can wait for the next installment to see what happens.
MackkaMark big difference between "Not wanting to do it" and "Cant be done".
You will read in my email it can be done although admitedly may mean changing lenders because of the CBA limited serviceability model when it comes to investors.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Macka
The branch member is restricted to the servicability model that applies to their bank. Richard knows his stuff – so if you want it done, best to get him to sort it out for you.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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