If you don’t have any equity in a home and it has taken years to save $10,000 for a deposit for the first IP. How do I get money for the 2nd & 3rd IP in a short time. I understand that the 1st property will be generating a +cflow, realisticaly this isn’t going to be enough for the next deposit if we want to fast track things like Steve McKinight did.
All / any help would be greatly appreciated as we are so keen to keep things rolling.SamnGav,
You are living your own life and creating your own conditions. Steve McKnight bought property some time ago, before CF+ property was as fashionable as it is now. It might be wiser to develop your own plan, instread of attempting to replicate someone else’s success under different RE conditions.
Samngav, if you buy well enough, you can indeed create a new deposit in a short period of time. If you buy in an emerging area, there is a possibility you will get some kindd of CG on your purchase. Just because you buy CF+, you wouldn;t be presuming NO CG, would you? I bought a property at Xmas, and just got a bank valuation done today and it’s gone up by half my annual wage! That’s certainly enough for another deposit, samngav. So don’t lose hope. You can still buy well in today’s market and achieve CG enough within a few months for a new deposit. That’s IF you buy the right property (whatever that is!)
kay henry
Kay’s correct on buying well – remember you can pick the purchase price, you can’t pick the sales price.
You could add value to the IP – depending on the IP this may or may not be an option, but some of the approaches include improvements (renos) and repurposing (4 bedroom house to student accomodation, townhouse into an office).
You could also simply wait awhile….depending on the property the time it will take will vary…but you are saving money as well aren’t you
It gets progressively easier as you have more properties, so just keep the ball rolling – you’ll get there.
Cheers,
Aceyducey
Hi samngav
that is a good question because most people when they start out don’t have much in the way of equity.
it shows how important it is to buy well, if you buy for less than the going rate it will be easier to get the home revalued at a premium to your purchase price. as the other s have mentioned you can add value (eg paint job) to increase the value so that when you refinance you access that money.
finally you can look at other ways to source finance. when i started buying 8 yrs ago i had next to nothing behind me (Net worth only $25k), so i borrowed from my mother, then refinanced the home and paid her back in full. i also went in a partnership with my brother to share a house Using these techniques i was able to buy 10 properties in 12 months. even though my salary income was only about 25,000 per annum.
so you need to put your thinking cap on, i’m sure if you want to buy more property the answers will come to you in time.
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
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