- H.E.C.BMember@h.e.c.bJoin Date: 2005Post Count: 4
I just finished reading the book during the weekend; it was a really interesting reading; showing me a new world of opportunities and concepts that I did not know about.
However, after finishing reading the book I have now a lot more questions that before.. One of the areas which I still donâ€™t understand is how you finance to buy too many properties in just one year â€¦ I donâ€™t see from the money is coming.. I understand how is possible to buy an investment property using the equity and saving that I already have .. but how do I get the cash money to buy others 5 o 10 in one year.. could anyone help in relation with this topic.. I will welcome any advice..
[baaa]TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213RikkyMember@rikkyJoin Date: 2005Post Count: 313
Buy propertys that are under valued , do what I call a lick, Paint gardens tidy up. Then get the propertys re valued and use the equity.
Monopoly, my favourite gameH.E.C.BMember@h.e.c.bJoin Date: 2005Post Count: 4
Yes, but from where do I get this money.. I will assume that from the salary that I receive from working. But in a current market where values of houses are over 150.000, the minimum deposit that I need is 20% or $30.000.
With a salary of $50.000 a year, I could meet the deposit to buy one house a year in best case.
This is what I donâ€™t understand how can I come out with all the cash for different deposits (lets say to buy 5 properties in a year) ..DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150
The source of your misunderstanding may lie in the fact that you can’t do it.
There is a big difference between not understanding something, and simply not being able to afford to do it.
To gain understanding, simply take your fully paid off title deed of your PPOR worth 1MM down to your friendly local bank branch, and along with your $ 500K p.a. salary, buy 10 houses worth 100K each (LVR of 50%) and merrily service the loan that you’ve just taken out.
If your particular numbers for both the equity you have in your PPOR and salary are not big enough for the bank to approve, then you cannot.
I think it is the lack of big numbers, not lack of understanding, that is causing you to not reach your stated aims.
“No point having a cake if you can’t eat it.”Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
When we started wrapping in 1996 people said you will run out of deposits and the bank will say a BIG NO.
187 properties later we are still going.
IP funding and US property finance
our specialityHAV11CMember@hav11cJoin Date: 2005Post Count: 12
I’m in the same boat trying to work out different ways to add properties.
I guess its the old story you need the money to make the moneyTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Some ways you could do it include:
-find a money partner,
-wrap so you get some deposit money
-lease option so that you get the option fee
-wait for capital growth
-save like made
Discover Home Loans
[email protected]Property PassionMember@property-passionJoin Date: 2005Post Count: 172
my option has been to save like mad, but that gets old real fast, i find myself working way too much and not having enough fun.
i need to broaden my views, maybe find a money partner. im not really sure how this would work though.redwingParticipant@redwingJoin Date: 2003Post Count: 2,733
How about Peters “LEAPFROGGING STRATEGY” (as Rick said) plus you may need to sell some properties as you move along and ‘realise’ a profit..even better if you do this with your PPoR..
Either way..Property Investing is sometimes a slower process..
“Money is a currency, like electricity and it requires momentum to make it Effective”
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