finiance for a ip

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daniel vic
Participant
@daniel-vic
Join Date: 2013
Post Count: 120
April 12, 2014 - 7:22 pm
hey everyone

my situation is I have bought in Gladstone qld and it hasn’t done me any good at the moment!!!

I believe long term it will be fine, so that leaves in in the pickle that my capaticty isn’t the best the property in under construction btw…

ok moving forward I found what I thought was a supurb property well under market value it sold for 140k land in the area is worth 165k and house sell for 230k plus for a ordinary house everyday of the week

if I did purchurse it I don’t have a lot of money to start the reno atm could I buy the property and get a new val and that coming in say 30 k abouve purchurse price could I use that on reno’s to get started then possibly get another val once work is nearly finished if needed more to get my foot in the door?

I don’t have a lot of money atm and looking for ways to make money so then I can keep moving forward at a much faster rate ?

I am planiing on doing a jv with a partner to leverage money off

any help with be great

daniel
Steve McKnight
Keymaster
@stevemcknight
Join Date: 2001
Post Count: 1,763
April 12, 2014 - 8:11 pm
Hey there.
The problem you’re going to have is that in the current market, just about every valuer would value the property based on what you paid, as opposed to a higher value.
The exceptions are if you can find a lender to lend on an ‘as if complete’ basis – namely what the property might be worth once the renos were done.
This used to be possible pre GFC, but I don’t know anymore. Might be a struggle.
Other options could be:
1. Use a money / JV partner who can stump up the cash;
2. Get the vendor to carry back part of the loan, and use the ‘carry back’ to finance the reno;
3. Organize a lowish deposit with early access and complete the renos before you close.
Hope these suggestions help.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com
Success comes from doing things differently
daniel vic
Participant
@daniel-vic
Join Date: 2013
Post Count: 120
April 13, 2014 - 2:59 pm
thanks for the reply steve I can honestly say you have helped me even get to the stage of meeting agents and going through properties with check list’s and being on data base’s with agents your property course has helped me so much..
that particular property I went able to get the vendor to carry any money or a longer settlement they needed money yesterday sort of thing .
I money partner is a fantastic idea I asked my mother she’s not in on the investing thing so the last week I have been thinking hard and with some friends I made through the course and other social meetings we are going to do a deal together very exciting

I have always thought why are there not much good deals on the internet the other day I now understand the concept of the property sift

thanks steve
Colin Rice
Participant
@fms
Join Date: 2011
Post Count: 338
May 29, 2014 - 12:36 am
Most banks will not do another valuation for 3+ months from purchase. Some 6 months and some will use the same val for up to 12 months from my experience.
You could purchase via one bank and get a val from another but sounds like you will be in LMI territory so the costs of moving would not be worth the excersize.
- This reply was modified 9 years, 11 months ago by Colin Rice.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me
Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]