Finance for business

You would come under the self employed category at best and to borrow funds from a bank you would need to provide two years tax returns and financials.

Lo doc loans usually require 12 months BAS statements and  lenders will risk asses your declared occupation. Full time renovators will be a high risk occupation in lenders eyes and you would have to have major runs on the board to even be considered.

To add, if one partner is working and the other is renovating then all loans would have to be on the working persons name and also would need to prove serviceability as well.

If you have considerably equity in existing properties and the ability to service the equity loans then this option could be explored further.

Another strategy to consider would be to buy, value add, rent and hold the properties. 

ANZ are the 12 month self employed niche bank. 

I  have found ANZ the worst  bank on a few ocassions they wouldnt give a loan, when others  even tho they had less security, said no worries you are in a strong position being West pac, ST G and bank west..  ANZ tend to sneak up rates and are unco-operative with short term loan limit extensions, make promises you can have X amount then change their mind and not deliver. Of  the loans ive put out for tender ANZ were the lest competetive or they didnt even submit an offer.

I don't have any issues with ANZ. Apart from having a poor servicing calculator and not being overly competitive at present – they're product offering isn't too bad and their cashout policy is quite good (and transparent) which is important for investors.

Cheers

Jamie

I have managed to use them successfully on many occasions with no issues and have found they always do what they say they will.

A pro active BDM is always helpful to have on your side.

Private lending would be an option at 60% LVR if you are really serious about it or higher on a second mortgage basis. There is a better way to go about it though.

Expect to pay at least 10% PA on a first mortgage basis for private. There are still lots and lots of low doc loans around outside of the major lenders using 6 months business income to verify earnings or accountant certs and all sort of combinations but you still have the ABN and gst time limits to contend with ( but you are only paying bank rates and a small preimum ). Plus your broker will also have to comply with the law in this regard as well and ask the right questions and document your responses etc.

Off the finance part of it for a sec.

Most people in this forum would agree that you make your money when you buy. That is, the ability to pick something up below value or the valuation the bank gives it and identifying properties with value ad potential.

Learn that skill. You can do it while you are working and use the solid income from your great secure government job to buy them and flip them. Talk to an accountant to get your structure right mostly because you have a partner and you want to have clear strategies in case there is a breakdown.

Not to say that people don't make money doing reno's but doing one at a time is slow and you will get limited by your body. Use the old grey matter and learn a few skills. Negotiate. Study the zoning and property use regulations in your target area.

This is an example of what I am talking about. Buy a house with a  enough land to do a simple sub-divison and sell house and land. You could finance this with a standard resi loan up to 95% LVR if you are working.  Or even say 90% LVR with a 20k line of credit at settlement to use in the project.You have rental income for servicing as well. Use your seed money for costs. Keep the job until you have your first 5 to 6 projects done and then you'll be right. You can also use this time to see if the business relationship with you partner is going to work. Very basic strategy but you will make more money with your mind than with the paint brush with a bit of planning and study.