My wife and I have been flipping properties for over a decade now as a sideline to our regular income. We have operated under an bank overdraft system which has been great for the small scale operation we have been running.
However we have since sold the property that was the collateral for this overdraft and moved it to another that we own, but we are looking to now dabble in some higher priced property markets and the current overdraft is not adequate for our needs.
Just wondering, is there another finance option other than overdraft that would suit this purpose? Our regular income is coming to an end and we are looking at this option as a means of income, at least for the next year or two.
Thanks in advance for any thoughts or advice.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
This sort of will be hard to find unless you have a property to secure it against. banks may lend under commercial funding using the reno proeprty as security but it would generally be costly.
Thanks for the reply Terryw.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
We do a lot of this type of business for property developers and flippers and is done thru our Private lending arm.
Settled one yesterday for a forum member who only needs the funds for 60 days when their reno will be complete.
Usually max lvr on the property security is circa 70-75% lvr so you might have to use your O/d for the balance and reno costs.
Yours in Finance
Richard I take it that this is a short term loan and the LVR is on the property for renovation? leaving the PPOR as collateral for the O/D?
Obviously the interest rate on this kind of loan would be markedly higher?Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Yes all of our loans are no more than 12 months using the purchased property as security.
Our rates vary between 12-18% on 1st Mortgages dependant on the location of the security etc.
Yours in Finance