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Our funds sitting in the bank as FD ......Need Help
One of our friends ( professional medic) requested help to fund their purchase of a commercial unit.
The bank approved 300K but later put a condition that the unit should be owner occupied only and can not rent. Friend is bound to stay at present unit for another 2 yrs .
They asked us if we can have involved , a bit of background of us , we are mom dad investors prematurely retired and live on cash flow from our long hold rentals .
We re willing to help having funds sitting in the bank as fix deposit.
They are wanting to formulate document with solicitor and happy to pay commercial interest rate. Floating rate 5.30%
6 mths fixed 5.15%
1yr fixed rate 5.65%
2yrs fixed rate 6.20%
3yrs fixed rate 6.85% but expect to pay off within 2 to 3 yrs gradually reducing the loan.
Then They can buy the unit and rent until they are ready to move in when their lease to review in 2 yrs while they pay the com rate of interest for the money we lend
Any pros & cons in tis process & suggestions on these lines , dos don'ts and any advice in formulating the document is appreciated ????
The bank approved 300K but later put a condition that the unit should be owner occupied only and can not rent. Friend is bound to stay at present unit for another 2 yrs .
They asked us if we can have involved , a bit of background of us , we are mom dad investors prematurely retired and live on cash flow from our long hold rentals .
We re willing to help having funds sitting in the bank as fix deposit.
They are wanting to formulate document with solicitor and happy to pay commercial interest rate. Floating rate 5.30%
6 mths fixed 5.15%
1yr fixed rate 5.65%
2yrs fixed rate 6.20%
3yrs fixed rate 6.85% but expect to pay off within 2 to 3 yrs gradually reducing the loan.
Then They can buy the unit and rent until they are ready to move in when their lease to review in 2 yrs while they pay the com rate of interest for the money we lend
Any pros & cons in tis process & suggestions on these lines , dos don'ts and any advice in formulating the document is appreciated ????
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