Forums / Getting Technical / Finance / Low doc/no doc loans??

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  • Profile photo of charlie123charlie123
    Participant
    @charlie123
    Join Date: 2007
    Post Count: 19

    Hi Guy’s,

    I am wanting to buy,renovate and sell some residential properties with the view to making some additional income. I did this quite successfully a few years ago and would typically have them back on the market within 60 days. At the moment I have about $500,000 cash on hand but my serviceability is almost non-existant due to a failed business venture. I have a good credit rating with no defaults or judgements and was wondering if you could point me in the direction of either a private money lender of other lender who is not to worried about the serviceability as the loan would only be short term with a low lvr.

    Looking forward to your replies.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    Hi Charlie

    Nodoc loans on a non coded basis are certainly alive and well and whilst even on first mortgage the rates are not cheap (I own and run a private lending business so can talk with some element of authority lol) we have a number of clients who come back repeatedly.

    For longer term deals most traditional lenders are going to require some form income evidence whether it be from BAS / Accountants Declaration or Business Bank statements.

    Let us know if you need any further information.

    Cheers

    Yours in Finance

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

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    The problem you will face is the legal requirement for a lender to make sure any loan to you is not unsuitable. This means they have to consider your ability to repay the loan without undue hardship. Therefore low doc loans are not so low any more. However if you will be purchasing using a company, whether in its own right or as trustee, then this legislation will not apply and it will be easier to get finance. However don’t use a company for this reason only as there are many legal and tax aspects to consider.

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

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of charlie123charlie123
    Participant
    @charlie123
    Join Date: 2007
    Post Count: 19

    Hi Richard,

    Can you give me a rough indication of the rates I could expect to pay and the required lvr? as well as the term?

    Profile photo of charlie123charlie123
    Participant
    @charlie123
    Join Date: 2007
    Post Count: 19

    Hi Terry,

    I would be looking to purchase using a company, what would the requirements be to qualify and what lvr could you do? Also what rate of interest could I expect?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    Depending on the security location and lvr starting at 1% per month + 1% -2% application fee.

    Newly formed companies are fine.

    Maximum 65% – 70% lvr.

    Cheers

    Yours in Finance

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

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    @qlds007 would be interested in learning more about your private lending options Richard. Have sent you a PM and an email.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    Hi Terry,
    I would be looking to purchase using a company, what would the requirements be to qualify and what lvr could you do? Also what rate of interest could I expect?

    Consider the structure of the company when setting up – parties such as who should be the director and shareholders how the constitution should be structured and also tax considerations, land tax, depreciation and franking credits etc.

    Once the company is set up it can apply for the loan with the director(s) giving personal guarantees. Same LVRs, rates etc as persons with most banks.

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

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

Viewing 8 posts - 1 through 8 (of 8 total)

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