hi. i am about to get a property settlement and have decided to be a property invester, i have found the area i want to buy in and have found 3 houses that i could afford all under 75000 each and with rents of 130 and occupied. the area is less than 1 hour from the farm i live on. i own a 300000 house and have 150000 cash, i have no employment and soon will have no pension. i am 43yof. should i just buy 2 houses outright or should i buy 3 and have a 75000 loan, and will the bank let me if i dont have employment. also what is a suilable computer programe to buy so i can do all my own bookwork, is there a special one for us would be property investors or do i just have to adapt another one.
Hi Moneytree,
Thanks for your post and welcome to the Property Investing.com community.
The great power in property is your ability to leverage (ie. borrow usually 80%+ meaning you can get good returns since your capital outlay is low).
If you don’t leverage then your returns will be much lower as a % (since your denominator is higher), but higher in terms of $ since you don’t have a loan repayment.
Given your income issues, I’d recommend:
1. Seeing whether traditional lenders will still consider your application on the presumption you have so much equity in your home and this counts as good security!
2. Consider a non-conforming lender (such as liberty) who are potentially less concerned about the income issue. Perhaps contact a mortgage broker (do it online if you live out of town) to find out more.
Hope this has helped.
Best regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
hey wow, i feel so previleged to have steve answer my question. well i had a long day in court and didnt get my property settlement finalized. damm. so now i have to wait till 31st jan. is there anyway i can hold properties till my finance comes or should i just hope they dont sell and maybe if they dont i will even be able to offer less. ps can anyone answer my 1st post question about software for property investers. is there one available.
Edited by – [email protected] on 15/01/2003 5:37:56 PM
Hi again,
Hmmm – could you please expand upon your problem of why you couldn’t settle? I’m a little confused.
As for property software… I can remember a post a few months back that outlined what people were using. I recommend using the search function and using the words “software” and seeing what comes up for the last 90 days.
Personally, I use MYOB (for the physical accounting), Excel (for budgets) and WAMM (for wraps).
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
ok… the property settlement is for my devorce. thats how i will have money to invest….. i looked up some loans and a few said i didnt need enough money for them and on sudjested i just get a line of credit 6.15% on the property i already own, so easy isnt it. ! and seems the propertys (3) will all be positive and not negitive its ok that the loan is on my house.
Hi money tree, what is the suburb called where you are looking? Is it near a capital city? why are you investing in that particular area?
PS i would buy all 3 properties if they would fit your investment objective and goals (and if you dont have a goal WRITTEN DOWN yet, then i suggest you do that before you start investing.good luck and best wishes on your journey to financial freedom.
DanEdited by – [email protected] on 17/01/2003 5:14:19 PM
hey dan, thanks for the wishes. the area is on the murray. can you be my mentor, can i email you. how many properties do you have? regards tree
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