2 years - 5 properties, portfolio worth 3.1M

Nothing unusual. All my past brokers had the same opinion that this doesn’t work and I worked with someone who confirmed this does work. With his help, able to make it work for myself, which otherwise wasn’t possible in my personal name atleast with the lender I am using.

 

Why don't you make the broker famous by disclosing their name? I'm sure they'll appreciate the extra business.

My head is spinning from all the riddles on here and I'm not even looking to get a loan.

 

Family discretionary trust with corporate trustee. For deposits pulled equity out.

All other questions to be answered by an experienced mortgage broker.

 

I told you in my next response what you need - Family discretionary trust with corporate trustee.

Keep looking for brokers who can help using the above structure.

 

A trust is optional

 

You don't have to understand it yourself, but it has to be set up correctly and people will be confused and set it up wrong if they rely on these posts

 

Taking decisions by solely relying on social platform posts, in itself is a big problem. They help you find directions and then, engaging the right people(accountant and mortgage broker, in this case) should be the way forward.

Can see two kind of people in general -
1) Who are not experts, but found something and shared that with their limited knowledge to help others to give them hope and inspiration so that they can progress too.
2) Others who are experts and know what can be done but upon asking, they are not willing to share the complete information and leave answers in a way to create more ambiguity which doesn't help others.

 

I have been told multiple times this statement, but nothing further was explained despite asking a few times. Hence, not helpful and may have to ignore. Unless I am told how, I prefer to continue to use what works for me. Someday I'll figure out from the right people.

 

I got a related post here - Unlimited borrowing using Family Discretionary Trust

Some of the information/responses can be found there and I see hope when people answer that their clients use this strategy.

 

I don't want to give up secrets on a public forum. But think about it and you should be able to work it out. A trust cannot borrow money - a clue

 

Yep, it's the company/corporate that borrows with their directors being the guarantors of the loan, so technically it might be possible to borrow without trust but what about income/profit distribution discretion. People use trust all the time, so assuming there would be a benefit. I'll figure our someone day, with some more clue. Getting educated in bits and pieces. Thanks mate.

 

Whether a trust is a good structure is a different matter and will depend on a lot of other things. It is the fact that a company is the borrower that matters. A company is a separate legal entity - a trust is not.

 

Lol. Same here. I am just curious and intrigued. Just genuinely interested in how this works. I don’t intend to buy anything at least for the next 2 years.

 

Yes Terry, and I understand why you do this. In one of your later posts, you mentioned you don’t want to share such secrets on a public forum. That’s fine. I get it.
Well I guess, I have to continue searching for answers. As REAddict stated he has done it successfully, so there is a way. Just got to figure this out or find a broker who knows how to.

 

All the answers are in this thread and the other one that REAddict linked.

 

Thanks Terry much appreciated

 

@REAddict, first of all, your story is inspiring and congratulations on achieving the feat. I'm a newbie in property investment and learning few tricks of the trade. IMHO, the game of leverage starts with ensuring finance to acquire and repeating as much as one can(legitimately) and as fast as one can.
Wondering, apart of finance, how did you narrow down on location/suburb/street? Did you engage BA or DIY? Appreciate, there are overwhelming information online, however, at times/often misleading.
Please ignore if you've already mentioned in previous threads. Cheers!

 

You're right in saying that lending is the backbone of any property portfolio, so need to get it right. For property selection, there are majorly two ways. Either you research it yourself, which is going to be very time consuming and you would do that only if you like it, else go with an expect/BA who has already done this. It's individual choice. I like researching about areas, keep myself updated with latest news related to infra, so it helps but I do that even when I am not planning to buy, since I like doing that. If I was to do it just for the sake of buying something, I think it's too much of a work. With my research, I haven't just bought for myself but have helped many friends who were looking to buy and closed around 10-12 deals outside of my portfolio, not as a buyer agent as I am not one, but as a help. But now when more and more friends are expecting it, it is getting overwhelming, when I am in a full time job myself hence finding time is getting difficult day by day.

 

would you mind tell us which suburbs you are buying in Townsville? much appreciated

 

Now that you are helping people around you, have you thought of working as a Buyer's Agent? How about a Broker?