Join Australia's most dynamic and respected property investment community

Money too tight to mention

Discussion in 'Property Finance' started by ellejay, 9th Apr, 2016.

  1. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,112
    Location:
    Kimberley and NZ
    I'm not advocating borrowing what you can't afford to repay but what if you need a large loan, say $220k ish unsecured for a deal you don't want to miss? Say you have money overseas that you could access in a few months, but borrowing through banks is maxed here and you need a short term solution. Anyone done similar?
     
    Last edited: 9th Apr, 2016
  2. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,345
    Location:
    4/136 The Parade Norwood, South Australia
    Yes have done this to finance a business deal. Sourced through private lending.
     
    MTR likes this.
  3. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,112
    Location:
    Kimberley and NZ
    Thanks. PM'd you.
     
  4. imbi3

    imbi3 Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    69
    Location:
    VIC
    Solicitors loan? Although they will charge you arm and leg.
     
  5. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,112
    Location:
    Kimberley and NZ
    I've never heard of that, what is it?
     
  6. imbi3

    imbi3 Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    69
    Location:
    VIC
    Solicitors loan is similar to private lending. Some brokers have contacts with solicitors/accountants who would provide private loans with funds sourced from their clients/themselves who are seeking higher return compared to conventional bank's deposit rate
     
    House and ellejay like this.
  7. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,390
    Location:
    Mt Druuiitt
    Do it.

    I've never done it.

    Just watch out because the Panama Papers have blown the lid.
     
    TheGreenLeaf likes this.
  8. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,112
    Location:
    Kimberley and NZ
    Hehe yep if anyone finds out I'll be on leave with full pay for a few years until it all blows over.
     
    datto likes this.
  9. Skilled_Migrant

    Skilled_Migrant Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    688
    Location:
    Melbourne
    • Borrow against the foreign asset in foreign currency and use that money.
    • Repay the money when the asset is liquidated.
    • Watch out for tax and foreign exchange considerations.
     
  10. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,112
    Location:
    Kimberley and NZ
    I can't borrow in either of the countries I have assets in because in the first one it's just not possible as a non resident and in the second I'm close to max lvr over there so they'll only lend on a property in the same country. Hence I'm looking at options for an unsecured loan from Aus to buy overseas.
     
  11. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,735
    Location:
    Sydney
    @ellejay I'm curious what is the opportunity that you don't want to miss.
     
  12. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,112
    Location:
    Kimberley and NZ
    It's an o/s purchase but I can't access any finance there.
     
  13. TFBoy

    TFBoy Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    94
    Location:
    Sydney
    I second that, with all the market, economic, fx risk you will be facing...
     
  14. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,112
    Location:
    Kimberley and NZ
    Each to their own. I have a clear strategy which is serving me well, and I'm very comfortable with it.
     
    Last edited: 9th Apr, 2016
    albanga, Leo2413 and Nick Valsamis like this.
  15. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    909
    Location:
    Qld
    Most solicitors can access private lending. But it will cost. Maybe difficult if you can't offer security over an asset.
    Marg
     
  16. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
    Apparently a lot of Boganaires in Panama Gate......and I thought they were a unsophisticated lot....and would have trouble reading the paperwork.
    Go figure....;)
     
  17. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,390
    Location:
    Mt Druuiitt
    A bogan's literacy and numeracy skills impove greatly when > six figure sums of cash are involved.
     
  18. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,112
    Location:
    Kimberley and NZ
    I possibly could, just looking at options.