Great News if you are Stuck

This is why brokers charge a brokerage fee for development loans.

 

Im doing my 5 unit development with RAMS @ 70% LVR under rest terms so no $3k valuation, no $5k QS report with inspections fees, no 0.5% application fee, no presales BUT.......... this was done on an exception basis and was very hard to get across the line.

I am about to start another development which is for 6 townhouses and I will be doing this with RAMS and looking at doing it at 60% LVR under resi. If and when I get approval I will post the details.

 

Hi Shahin
I have already spoken to my RAMS rep and I am going to be going with them for my Croydon, just nice and easy, no presales.

My Thomastown loan was also with RAMS, I recommend this lender a good resi product if you are a developer.

The developer next door had to sell one unit prior to building and I assume its commercial rates which means more costs.

I just like the ease of this lender, makes it very simple

MTR

 

Hi @Shahin_Afarin . Where can i get more info on the 5 resi construction loan via RAMS? Is it on their website

 

Why don't you just have a look?

 

Number of dwellings for construction is lender specific information and thus not available for public viewing. It is also a policy exception.

What specific information do you need to know and I will see if I can answer it for you?

 

Terry.Couldn't find it on their website.
Wanted to know what criteria you need to meet to get 5 residential without pre sales. Eg can it be in a company name or must be individual names , what level of income (combined household and gross income or taxable income as stated on ATO NOA) , etc

 

Why not just engage Shahin to be your broker?

 

Their policy is maximum 4.
Shahin has said a couple of times in this post he has had more than that number approved 'by exception'.

It has to be a strong deal, plenty of assets lots of stable PAYG income, that sort of thing.

 

You are right MTR. Rams is one of the best when it comes to Low Doc lending.
They will do up to 80% LVR with 2 years ABN
Up to 70% LVR with 1 years ABN

Either 12 months BAS or accountants sign off (not all accountants sign off and they do take into consideration what you will actually make in their opinion. They will also receive a phone call from Rams to verify they signed the form and what they wrote).

Can use rental income but not provide the statements.

Up to 4 developments on one site.

Modelled estimates (desktop valuations) for most properties make valuations easy.

After 3 years with good history, easy to switch to full doc interest rates and save interest paid.
Rates under 5.3% in most cases. No LMI

 

70% max lend, very good income, good buffer and really big fight to get it through. So depends on loan writer having the courage to go into battle for the customers. These days has to go to top of credit for approval. So Shahin deserves a fabulous bottle of wine when he gets them approved. And Rams deserve a pat on the back for looking at each deal individually and from a business perspective. Sets them apart from the pack!

 

Sake of clarity and a free wine we don't have RAMS on our panel so what I have written above is my experience as a customer and not as the broker.

Many brokers don't mention RAMS as is not on their panel or those that have a referral agreement don't see much commission so its a very under appreciated product in the market.

 

Rams has to look at every deal individually because they are a sheltered workshop, they only have their franchise network to deal with.
Franchisees can't place the deal with an appropriate lender so they throw everything at their credit team and a lot gets done 'by exception'. It's infuriating having to fight for almost every deal as a loan writer and the poor sods in credit don't don't if they are coming or going most of the time. Rams can't work out whether they want fhb's, self employed clients investors or upgraders, so they do everything patchy. They have some good niches, low doc and 4 unit development being two, but without brokers on board the niches are mostly unused and or unknown

 

Rams seems a good option for those near the end of their servicibility because of apra to buy more ip's
Anyone know
1)what their assessment rate is for their new and old loans
2)how they treat existing debts(what buffer they add when they calculate)
3)any max lend with abn number with low docs?

which in turn will determine how many more properties we may be able to buy with them
thanks

 

I have pre-approval with RAMS for 4 x 2BR Townhouses. How has your experience been so far with RAMS

 

Hello MTR

I have pre-approval with RAMS for 4 x 2BR Townhouses. How has your experience been so far with RAMS, and anything to watch out for ... I've heard mixed reviews about them like 3k valuations, but the good thing is they do not insist on pre-sales

 

Hello Terry,

I have pre-approval with RAMS for 4 x 2BR Townhouses $1m construction loan. How has your experience been so far with RAMS, any small print to watch out for before signing up unconditionally, thanks

 

Excellent

 

Thanks, that is reassuring to know.
I read earlier that you built in Thomastown. My development is in Reservoir. Are there any builders in the area that do multi-units that you could recommend. At this stage I have zeroed in on Cornerstone, but it would be good to get a 2nd entity into my shortlist.
Thanks in advance.

 

I wont recommend anyone in this time of the market, prices are soaring and I worked it, a tough call, you want to keep the prices down you need to go small builder, which requires more work and perhaps more risk but should pay off if you do your homework.