Maxed out with 4 Investment Properties looking for creative stratergies

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If you work for someone selling your labour in a PAYG role, all good, but you only have so many hours to sell (8-10 hours if you want some daily leisure). Businesses offer ‘leverage’ and are not so constrained by the limited hours in the day, and can be grown ad infinitum if you have the drive, energy and the talent to source the capital.

 

Hi Inertia,

Well ideas like that is what I'm here to discuss.
If it were something exciting enough like buying a block or tower of units and putting them on airbnb / turning into a hotel structure etc then that is something where every investor could get the same equal proposed return. I think that is something that could be crowdfunded.

Cheers

 

Hi Peter,

Nothing personal obviously, but I think your advice would come under a conflict of interest there

Thanks

 

I see no conflict of interest in Peter's post.

 

Sorry I think I should have said I've been doing this since 2005 / 13-14 years now.

I have thought about selling one to try to get a better performer. But I'm not on as good income as I was in the past. So the servicing problem might even stop me from getting back to where I was before selling.

 

Nice / good of you to say but it's really not that big in gross terms. But regardless of where I am now I'd still like to keep growing

 

Would love to but I'd have to have a lot more capital to do developing.
Buying to subdivide maybe but it's very competitive.

 

I've already spoken with lot's of brokers that's why I'm trying to look at creative & alternative finance options.

 

I agree.
But my main source of servicing income is less than it used to be.
I have basically gone from a good paying job to being self-employed. Mainly because the cash flow from the properties is good enough for me to not have to worry.

 

He's a mortgage broker saying, maybe don't look at alternative / creative ways to finance maybe stick with traditional mortgage broking.

If he didn't want people to get mortages then I'd be more worried.

 

Nice article. I would definitely be covering myself for worst case scenario before making any investment.

 

This isn't a conflict of interest - a possible bias perhaps.

 

I'm not sure where the conflict of interest would be. I think my comments about comparison websites are fair. I don't dispute that they compare rates and fees, not serviceability assessments or policy. You won't get that comparison from any lender directly either. The only place you can get an accurate comparison of how much you can borrow via various circumstances is via a broker.

This isn't a question of who's got the cheapest loan, but who will lend money.

My observations about 'creative' finance options are my opinion, but within my experience (which is probably more than most people's) it's a reasonable observation. I've seen a lot of people try to do creative things with builders and private investors. The one lending the money tends to take on very little risk but gets a lions share of the profit.

By all means peruse this if you feel it's worthwhile and nobody else will give you the money. By the nature of your original post however, I suspect there's quite a few decent options available to you that aren't as risky or expensive as the path you seem to want to follow.

 

I like it.
I did the best I could at the time.
In retrospect yes, I would have and did kind of try to get ones with subdivision potential. But I guess it was more of a bonus tick box than a must have tick box. I should have tried harder in retrospect. Maybe that's the main thing that's holding me back, although average cp+ properties, they could have been better.

 

Love it thank you.
Will come back to as there is some research & reading to be done by the looks of things

 

lol biased then

 

Hi Beano,

Thank you for the input.
Would the banks lend more to someone in my position for commercial properties then?
Perhaps because they value the commercial income as a higher servicing component?
Seems a little too good to be true (setting aside larger commercial deposits for a second).

Thanks

 

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Thanks Rolf, I would love to have a business that earns a decent profit (I'm sure I'm not the only person).
The same way I would like to have more cash flow positive properties. The question is how

 

Amen to that.
But if I had a business that did that I personally wouldn't buy property. I'd keep doing and growing that.
I'm trying to grow something that has been working for me.

 

Hi Peter, I really appreciate the input but you're a mortgage broker saying don't be creative get a mortgage.