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Patchy income finance

Discussion in 'Property Finance' started by JKWS, 7th Aug, 2015.

  1. JKWS

    JKWS Well-Known Member

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    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!
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Probably not.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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

    Shahin_Afarin Residential and Commercial Broker Business Member

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

    JKWS Well-Known Member

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    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.
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    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.
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    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)
     
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Terrys probaby not is more like NO.

    All the above is useful advice, esp the part time bit !

    be mindful that if the primary income is from cap gain,you may need more than the 2 years traditional trading figures


    ta
    rolf
     
  9. JKWS

    JKWS Well-Known Member

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    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!!
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    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.
     
  11. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    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.
     
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