All Topics / Finance / how can I finance 5 – 10 properties in 1 year ??

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  • Profile photo of H.E.C.BH.E.C.B
    Member
    @h.e.c.b
    Join Date: 2005
    Post Count: 4

    [army]

    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 don’t understand is how you finance to buy too many properties in just one year … I don’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..

    Regards

    Mr. Camacho
    [baaa]

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    You just have to keep coming up with the deposits.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of RikkyRikky
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    @rikky
    Join Date: 2005
    Post 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 game

    Profile photo of H.E.C.BH.E.C.B
    Member
    @h.e.c.b
    Join Date: 2005
    Post 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 don’t understand how can I come out with all the cash for different deposits (lets say to buy 5 properties in a year) ..

    Profile photo of DazzlingDazzling
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    @dazzling
    Join Date: 2005
    Post Count: 1,150

    MrCamacho,

    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.

    Cheers,

    Dazzling

    “No point having a cake if you can’t eat it.”

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Not everyone can do it. You need a good mix of positive cashflow income and decent capital gains. By the way, you can borrow far more than 80% of a property value.

    TMA


    http://www.email4money.info
    Investor Links
    First Home Buyer Website


    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post 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.

    Cheers Richard
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of HAV11CHAV11C
    Member
    @hav11c
    Join Date: 2005
    Post 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 money :)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post 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

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Property PassionProperty Passion
    Member
    @property-passion
    Join Date: 2005
    Post 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.

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post 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..

    REDWING

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

Viewing 11 posts - 1 through 11 (of 11 total)

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