Clever Finance Solutions Loan Success Stories: Phyllis and Vicki

Phyllis and Vicki have been investing in property for many years and now not only have their own home but four investment properties worth over $2 million as well. Their last deal involved buying a block of land and building a duplex (a dwelling having apartments with separate entrances for two or more households), which was then subdivided upon completion into separate titles and rented out. They still retain those properties but were keen to do the same again as they expanded their investment portfolio.

Phyllis and Vicki needed to use the equity in their current properties to get the funds to pay for this project. Unfortunately, lenders have tightened loan requirements that allow access to equity and they are treating existing repayments differently.

So, we needed to develop a plan that allowed Phyllis and Vicki to tap into some of the equity in their existing properties. We didn’t want access to all of their equity because that would jeopardise their chance of gaining approval for future borrowing if and when it was needed. We also wanted to use only the equity from their investment properties rather than expose their family home to more risk than necessary.

The plan involved several refinances to other lenders that would allow access to the equity needed, along with some constraints as their properties are held in a combination of trusts and personal names. We also needed to execute this in a particular order to make it work.

As a result of the new lenders accepting the applications, Phyllis and Vicki have access to over $200,000 in cash equity from their other investment properties. They also have a pre-approval in place to purchase the land and construct the duplex for $1 Million.

So now Phyllis and Vicki are happily out shopping for the right property to purchase and start construction on their duplex!

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