I have often read articles/stories of how people accumulate many properties in a short time.
How does one find the bank finance for them?
In my experience, lenders tend focus on employment income when deciding how much to lend (with equity in properties or rental income not being as important). Lenders also get nervious with highly leveraged property portfolios.
Any insight on how bank finance can be obtained on several/multiple properties would be appreciated!
Many thanks…
Once one’s ability to obtain loans becomes impossible because of the bank perception that, based on one’s disclosed income, you will not be able to service another loan, that is when one reaches the stage where one can no longer continue to purchase.
Some people may see going Low Doc as the solution. The problem however is that one still
is stuck with one’s obligation to service the loan so a ceiling is still nevertheless in place somewhere.I have met many people who keep on buying well beyond their ability to service their loan or loans from their income.
They merely use part of their loan to make the payments. When they run out of money they refinance.
They are in fact relying on the market to continue to rise of course.
Howver that strategy won’t work in a market which is either stagnant or falling !!!
So this method, apart from being illegal because often such a loan is obtained a loan by fraudulent means, certainly doesn’t work in today’s climate.
One way to continue to purchase of course is if one becomes creative by using other people’s ability to service so as to being able to purchase some more properties.
Another solution has been suggested by Steve in his latest newsletter.
Ultimately it becomes down to growing, expanding,
over a period.Just as Rome wasn’t built in a day neither is a real estate fortune.
Steady does it (the way I see it).
Pisces
Thank you very much for your responses! Yes I had read Steve’s May newsletter which has a helpful suggestion on multiplication by division.
Now I have a silly question… [blush2] .. what is meant by Low Doc?
Thanks again.
For a ‘proposal for finance’ quite similar to the Richmastery one which they charge megabucks for, click on http://www.dolfderoos.com/media/ choose the Red CD, and download the finance proposal….
Check out the other freebies too – certainly can’t hurt.
Cheers
Meliambored,
Dolf is a Kiwi…. so I guess he’s almost Aussie !!! hehehehe…..
The proposal for finance is quite good, and, the banks do like it…. we use something like that with our bank and they are HAPPY….
Cheers
Scott
Pelican Investments
http://www.pelican-invest.comiambored
Most of the property strategies in use in Australia today originally developed somewhere else (mostly the USA). It is always worth sourcing information from overseas and then modifying it to suit local conditions. Sometimes it can’t be done, but it’s amazing how often it can.Keep smiling
Felicity
“Mel, isn’t Dolf American? What point is it learning the American methods unless investing their? They do things very differently.”
He also owns alot of property in NZ and also in Australia. In fact he runs a development company in NZ (http://www.propertyventures.co.nz/).
Wraps and LOs orignally came from the US as do most innovative loan products. Felicity is right most stuff that can be done in the US can be done in Australia, all it needs is some simple tweaking or modification.
Rgds.
Lucifer_au>>I should look into his site a lot more<<
MMMMORE ? [glum]
Pisces
Originally posted by Pisces:>>I should look into his site a lot more<<
MMMMORE ? [glum]
Pisces
[lmao] Pisces..
Rob, considering this thread is about financing ‘multiple properties’ I don’t think it’s necessarily aimed at beginners..
Have a look at Dolf’s finance proposal (he spent many years living on the Gold Coast in his early years, so he knows all about Aust). I don’t think you’ll say that it’s only for advanced investors. Anybody can use it, and it’s not a bad way to go even for your first application IMO.
Cheers
MelHi,
As long as you are building up a cashflow positive portfolio, each time you purchase more, it actually increases your annual income, therefore increasing your buying power. [laughing]
It is when you purchase negatively geared properties, that it puts a stop on your investing. [weird]
Good luck,
Del
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