I would appreciate it if someone would shed some light on the pitfalls associated with using home equity to fund equity in IP’s.
the aspects of this that most interest me relate to :
a) the limitation of being able to grow the number of IP’s to meet income replacement needs ($50,000 pa.), and
b) what sort of strategies might need to be employed to improve the opportunity of reaching PCF levels to fund lifestyle costs.Thank you,
Kerry
Hi Kerry
If you haven’t read it yet, I’d suggest you read through the following:
https://www.propertyinvesting.com/strategiesThis will give you an overview of a number of cashflow strategies. Then, once you find a strategy that suits your circunstances, educate yourself further on that strategy and take some positive action.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
hi Optimist
look at equity as cash but with out the interest bill.
equity might be in a property but it is very fluid and is looked at as cash by most lenders.
equity is very popular as the deposit base for alot of lending.
strategy and structure are very important prior to any investing.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Lawrence has hit the nail on the head.
Whatever form your IP investing takes on structure & funding are the most important issues. It can be extremely costly to have to unwrap a maze of X collaterised loans that your average Bank has set up for you.
Purchasing property or undergoing +cash flow techniques such as wrapping, flipping or LTO can be eroded if you purchasing in the wrong structure or have the loan set up incorrectly.
Equity used correctly can be your lifeline and will enable you to enhance you portfolio. If you are looking to pay down debt (and sometimes this can be a pre-requisite for wrapping) then ensure the loan works for you and not your Banker.
Remember most Bankers are not big property investors and have limited scope outside their own field.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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