Patchy income finance

How hard is it to get finance on a patchy income?

Currently I'm making a wage, it's safe and solid. My debt and equity are equal and my all my repayments just cover my loans.

I'm curious, if I left my income and focused on small deals for a year making more money at a higher risk.

Would the banks lend me?

Would I require a business setup for this?

My broker said it's hard for him to say until I started?
Why would he say that!!

Anyone on here have any input or experience with such a situation?

It would be greatly appreciated!

 

Probably not.

 

But what do you mean by small deal? I was thinking property, but you may have something else in mind.

 

Whats your employment status and occupation? Casual? Full Time, multiple jobs/employers?

 

Currently full time.
What I'm looking at doing is taking some capital I have and going ahead with small property deals. Options etc- I've got a big enough network and have builders willing to come in on deals.

 

It would be treated as self employed, so you'd need an ABN for min 2 yrs, and a preferably 2 solid years trading income too.

If you need finance, do it while you're PAYG.

 

1. Set it up as a business
2. Do it on the side while working full time
3. When banks see enough to service from biz, you don't need day job anymore (prob 2 yrs)

 

Great advice.. Thank you guys.

1. A business setup with PAYG
2. Part time 2 years income from new company on the books. So August 2017 I can transition.
3. Keep job as security whilst this is all happening
4. Make money, 2 years of profit and growth from original investment sum (2 years wages)

Only other question to follow on-
All the small developments I've done over the last 5 years won't count as they have been in my personal name? I'd still need to follow the above? Wish I knew this 2 years sooner!!

 

Also keep in mind the lenders won't like it if you are borrowing and repaying the loans quickly so you might find they want to do this as a commercial lending after a few.

Personal developments can count, but lenders will not take Capital Gains as income as they are one off events.

 

I hate to say i might have to disagree.

Lodoc / nodoc development finance is not out of the question at all depending on the viability of the project.

Certainly isn't going to be a standard banking lender or traditional interest rates but if the deal stacks up no reason why the finance cannot be arranged.