I don't quite follow this breakdown, I'm at ~15 portfolio but still using level 2 broker, I don't see a need for me to go level 3 or beyond, I do have commercial loans for commercials, I even have bought a residential with commercial loan for higher LVR, is that falls into a level 4?
Hey mate, commercial lending is a different kettle of fish & offers more flexibility and lending sophistication. The tiers we spoke about was strictly for residential lending. Like if there was a 4th level I suppose it would be private lender. Generally better borrowing capacity there...but rates/terms of lending are more expensive.
@@FullCircleFinance I think this is my point, if you've structured the entity properly why would you ever need to go into a level 3 or 4? If you just buying residential? Both me and wife are fully PAYG and the more property I bought, the more servicing I have, simply by clearing the debt (by selling) under personal name and put new purchases into different SPVs. Or is there any limit on SPVs due to limited lender in the market? I currently have 4 and just need to create a new one if I run out of servicing.
@@Sarmuu Generally speaking (because im not fully across your situation), the trusts have to be profitable (to get accountant letter) & trust properties have to have equity in them for people to access it, to then fund next IP in different trust...and repeat until you run out of banks to do this with.
@@FullCircleFinance Ah yes, one of the key to this is strategy is asset selection and how to get trust to run positive, obviouslly I keep very close tabs on my cashflow for every trust to make sure it's profitable. I guess what's obvious to me isn't necessary for everyone else out there, so in those situations you do need a level 3/4 broker. And potentially someone will need to go from level 1 directly to 3 or 4.
Great Question Sarmuu! Sounds like you’re killing it all ready mate! Amazing job building to 15 rentals 🙌🏼 Thanks Morgan for jumping in the answer in more detail!
Great sesh team ❤🎉
I don't quite follow this breakdown, I'm at ~15 portfolio but still using level 2 broker, I don't see a need for me to go level 3 or beyond, I do have commercial loans for commercials, I even have bought a residential with commercial loan for higher LVR, is that falls into a level 4?
Hey mate, commercial lending is a different kettle of fish & offers more flexibility and lending sophistication. The tiers we spoke about was strictly for residential lending. Like if there was a 4th level I suppose it would be private lender. Generally better borrowing capacity there...but rates/terms of lending are more expensive.
@@FullCircleFinance I think this is my point, if you've structured the entity properly why would you ever need to go into a level 3 or 4? If you just buying residential? Both me and wife are fully PAYG and the more property I bought, the more servicing I have, simply by clearing the debt (by selling) under personal name and put new purchases into different SPVs. Or is there any limit on SPVs due to limited lender in the market? I currently have 4 and just need to create a new one if I run out of servicing.
@@Sarmuu Generally speaking (because im not fully across your situation), the trusts have to be profitable (to get accountant letter) & trust properties have to have equity in them for people to access it, to then fund next IP in different trust...and repeat until you run out of banks to do this with.
@@FullCircleFinance Ah yes, one of the key to this is strategy is asset selection and how to get trust to run positive, obviouslly I keep very close tabs on my cashflow for every trust to make sure it's profitable. I guess what's obvious to me isn't necessary for everyone else out there, so in those situations you do need a level 3/4 broker. And potentially someone will need to go from level 1 directly to 3 or 4.
Great Question Sarmuu!
Sounds like you’re killing it all ready mate! Amazing job building to 15 rentals 🙌🏼
Thanks Morgan for jumping in the answer in more detail!
Todddyyyyy!
Forget weekly slice. I need daily slice!
Haha not sure if we can make it daily but might have something extra cooking each week in the new year 😊
@pizzaandproperty1246
Cook faster. This big boy is HUNGRY 😄
😂
Just in time!
You’re about to get finance sorted?
@@pizzaandproperty1246 now need level 3 and up 😊
Sounds like this was a well timed episode, happy investing Ankita 😊