Stretch Target of $20m gross by 2022

oh man, @Beano , that is too humble. often I feel I have wasted my life when compare with your achievement.

 

Great post. I've enjoyed reading it.

Rams are constrained by apra similar to other lenders. They are owned by westpac and have a similar borrowing calculator to st George and westpac.
They have a pretty good low doc policy for self employed borrowers which could possibly be used by payg investors whose rental income is larger than their payg income.

But that's their only real niche.

They are a franchise and don't use the broker channel anymore.

 

Must have been lots of flat times in there.

I have had some units, always 2 bed or more, did well with them, but sold them to buy houses.

Yes, good problem to have, but sounds like you could find a few that may not be stellar performers & if they are mainly units it would be an easy decision for me to let them go if they are in Syd,Mel or Bris

All the best with your problem

 

Rams told me I was rent reliant and turned off the tap well before the rest. Would not even do topups when other lenders would happily take the refi plus topup.

So from my experience they have not been a particularly good lender for servicing, but depends on individual circumstances i guess

 

Property investing is a means to an end, not the end itself.

Sometimes you gotta break a few eggs to make an omelette - otherwise you're going to go hungry despite having a barn full of eggs!

 

Mate I agree....probably because I love Omelette's ....just have decided what fill it has to have. .....

 

Some RAMS rashers for you !

 

Oh got it. I use the term REITs but same concept I guess. Yes I'm in the process of gradually transitioning over too, taking property gains and putting into high yield blue(ish) stocks and ETFs and Reits.

 

Very humble, I'll happily trade to be the lumbering tortoise. What's next for you Beano?

 

Looking forward to seeing you reach this goal and thank you for posting. I have found it motivating and inspiring - in the sense of being able to achieve what perhaps our mindsets tell us we can not.

 

Get an abn for 12 months, register for gst, find an accountant willing to sign off on your (low doc, rental) income, all done.

 

Yes, that easy.

 

Had all that, as I was full doc on loans with them they would not do low docs for more lends

 

Mortgage fraud is lots of fun?

 

True...but they also look at your personal assets.

RAMS policy is very favorable to people with full docs...so if you go in with this..the loans a are pretty easy to get.

No broker channel...but a few people on this forum who are above board have got loans...

 

So let me get this straight, via RAMS, and for example (illustration purposes only),

1) John Smith sets up a company and registers it for GST
2) 12 months later, using savings of say, $400K, buys a block of land with an old,crappy house on it with the intention to develop it into say a duplex.
3) uses savings again to fund $500K turnkey construction of a duplex pair.
4) sells the duplexes for $500K each so gross profit = $100K
5) The accountant then lists the ‘income’ for the business as $100K per annum. John Smith is not working in a PAYG job or has other business interests. The business is set up strictly to do this ie it’s not trading (in anything else).
6)on that premise of a $100K or so 'recurring' income, John can now approach RAMS for a lo doc loan and go find another property to do this to, except he will now have access to finance.

Any other assets/liabilities that John owns outside the company fly under the radar because including them, John does not service for a new loan with any lender.

Have I got this right?? Any chance to be able to go lo doc for the very first development or do you need runs on the board first.

 

No offence but you are really not in any position to comment on anyone's financial affairs.

In my scenario as a Developers= who submit GST and trading operating a business, there is trading stock and builds/developments in progress.

My accountant has many developers on his books and this is part of business, not all stock is sold in the same financial year, for whatever reasons, could even be simply a tax strategy.

That is why we have lo docs because my accountant understands the figures/numbers, can see the profit/income that will be declared/generated in the foreseeable future/next financial year and therefore happy to sign off.

RAMS lo doc is a very good product and am a little tired of some people throwing this product under the bus simply because it is a franchise and mortage brokers do not receive commission if clients choose to use this product.



MTR

 

Wasn't commenting on anyone's financial affairs. Read Tobe's post again perhaps?

Wasn't referring to you at all

Have seen a couple of others write on these forums about just signing up for an ABN and getting RAMS finance. Their lo doc product is only for people who are legitimately self employed, not for people who sign up for an ABN and sit out the waiting period as Tobe's comment implies.

Has nothing to do with brokers at all. Confused how / why you would come up with that.

 

Is the interest rate monstrous? And is it difficult to get development finance/ a construction loan?

 

no