Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of amelie1313amelie1313
    Participant
    @amelie1313
    Join Date: 2011
    Post Count: 4

    Hi,
    My business partner and I are buying a commercial property and I have a few defaults on my name due to a businesss that went bankrupt a few years back. My business partner is putting it in her personal name only to stop the banks from looking at my history, on the back end of this we are getting a solicitor to have a legal agreement that stipulates the building belongs to both of us 50/50 – this is a long term investment and hopefully the first of many.

    can anyone see any problems I/we encounter down the track?.. or is there a better solution…(yes, I have to wait another 2years before defaults are gone, then will put my name on it or put it in our business name)

    would love to hear your comments

    Profile photo of Rhys AdamsRhys Adams
    Participant
    @rhysadams
    Join Date: 2014
    Post Count: 14

    Hi Amelie

    Your solicitor would be able to provide the best advice but perhaps a trust structure where you are a beneficiary may work and provide you with some protection?

    In what structure do you operate your business together?

    You also need to be mindful of stamp duty ramifications for you to add your name on title down the track.

    Where are you looking to buy?

    Cheers
    Rhys

    Rhys Adams
    http://www.redcommercial.com.au/
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    Commercial Property and Construction Finance Specialist

    Profile photo of amelie1313amelie1313
    Participant
    @amelie1313
    Join Date: 2011
    Post Count: 4

    Hi Rhys,
    Thanks for responding.
    great advice about setting it up as a trust, definitely will look into this.

    Its always greatbounce ideas around.

    Thanks again.

    Amélie

    • This reply was modified 8 years, 4 months ago by Profile photo of amelie1313 amelie1313.
    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Listed beneficiaries will generally be dragged into the finance perspective in any case, so you’ll be back to square one.

    A subprime lender may consider looking at this sort of deal if it can shown that the issues behind the defaults are not ongoing, but rates will significantly higher than prime lending.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Rhys AdamsRhys Adams
    Participant
    @rhysadams
    Join Date: 2014
    Post Count: 14

    Hi Amelie

    As long as the business and your partner can show sufficient income to show debt servicing and you have 30% equity to contribute to the purchase (plus costs) you should been in a position to finance the property.

    Cheers
    Rhys

    Rhys Adams
    http://www.redcommercial.com.au/
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    Commercial Property and Construction Finance Specialist

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    At a 70% lvr you should be able to obtain a competitive rate especially if you are looking at fixing the rate.

    Done a couple of deals recently in the mid 5’s.

    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 Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Discharged bankruptcy over 2 years is ok with standard banks- ie CBA, Westpac, ANZ, ING etc…at standard rates < 5% and term – just need 20% deposit + good history for the last 2 years. A minimum of 24 months clear record since being discharged from Bankruptcy or Part X Arrangement.

    Never presume.

    But if your file is still pretty bad but yes may need to consider nonbanks or a lower LVR.

    Mick C | Shape Home Loans
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    Same Banks. Better Rates. Served With a Passion.

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

    ^ Disregard my last post…read the OP post again….not bankruptcy but recent defaults on file…diff story.

    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 thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Can someone buy into a unit trust later ?
    Cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
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    selling motels in NSW

    Profile photo of RPIRPI
    Participant
    @rpi
    Join Date: 2012
    Post Count: 308

    If you are utilising a silent bare trust then that will help deal with taxation issues later on, duty needs a bit more documentation. I would strongly suggest applying for a private binding ruling from the tax office to help your SANF.

    If using a unit trust you can always transfer units, again taxation and duty issues may arise (duty varies from state to state)

    RPI | Certus Legal Group / PRO Town Planners
    http://www.certuslegal.com.au
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    Property Lawyer & Town Planner

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