Hi fellow investors,
I'm looking to begin investing but i have a query as to where to obtain deposits from.
Say if you want to begin an investment portfolio and want to invest in more than one property, then how do people manage to obtain deposits?
for example you buy one property for say 200000$ and leave a $40000 deposit, then say a year down the track you want to invest in another property of similar value, then where does your deposit come from? Id say its pretty hard to save up 40K in cash in a year. Do you need to access your equity or develop some form of structuring?I read steve mcknight's book and he states he bought 60 properties in one day in new zealand… but how did he manage to obtain finance on all these properties and also put down 20% deposits on each of them?
Cheers in advance for any help.
You have to have a deposit + costs, stamp duty etc so make sure you have enough, some lenders are doing 90% with mortgage insurance, so this would save some of your deposit.
If you have no further access to deposits you need to hope you are going to buy in a growth area so your next deposit will come from your first property, so to do the same thing your property would need to go up 65k and then you could borrow 80% of that
Barry
so how does one (steve mcknight) find the finance to buy 60 properties in one day?
Hi Luey, the properties were owned by one person and I believe were sold as a package of some kind. ( according to Steve on one of his DVD's)
Steve has been around for a long time in property, so either he had the cash or he had the equity, as well as the borrowing capacity which means gooood earnings
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