Hi I am looking for good Ideas on how a person could borrow cash and then use this as a deposit to purchase properties,
You can PM me with your good ideas.
Vendor finance, Not suitable.
Equity in another property, Not suitable.Other Ideas please,
maybe something like borrow cash from one bank/finance company and then go to the next bank with this as a deposit
Or find a private lender that can lend $100k to $5 mil plus, at an interest rate of upto 10% P/A (would you know anyone?)
Or is there any banks that would loan $1m on a purchase price of $1m if it was valued at $1.250,000?
any other Ideas on how this could work?
Or is there any cashed up people that have cash but don't know what to do with it and want to earn 10% interest?Sorry but 10% to get you to 100% will be a stretch. If you look online for second mortgages You are closer to 18% but you still need some equity. Caveat loans can cost up to 5% per month.
You need to work out a way to get some cash / assets first.
Banker wrote:Sorry but 10% to get you to 100% will be a stretch. If you look online for second mortgages You are closer to 18% but you still need some equity. Caveat loans can cost up to 5% per month. You need to work out a way to get some cash / assets first.Hi Banker
I did not spot to many 18% most were around 14%
I have cash and I have assets and also equity but I am running short, so I am trying to find away that will work for me so that I still have my cash and equity on hand incase of an emergency
you never know what the market may do, so I am trying to build a sheild now rather than later when it may be to late.I was just scrolling the net for personal loans secured and unsecured also business loans, they seem to start from about 7% and go up from there,
there was a couple around 10% that would probably suit my criteria but would still need to look a little closer at these.Basicly I need to find away to get my hands on cash when I need it and this cash will be used as deposits on property,
The deals I come across are normaly a minimum of 20% under valued and go up from there and I would like to start buying more of these rather than letting them go, anything with less than $100k profit is not worth my time based on a property around $400k.
The cash I require as deposits is anywhere from $100k to $500k plus, so if I was able to find these amounts I don't mind paying upto 10%, sure there's investors that will loan it at 18% but there taking to much of the iceing of my cake and I don't take risks, so 10% is where I am at for now, and then at least I know they will be paid and I can sleep without having nightmares.So have you explored other ways to make cash? E.g. a way to make an extra 50k per annum to help raise deposits and provide servicing for banks?
To grow a really big portfolio you also need a good cashflow generator… If you could sort this you could buy as many properties as your heart desires!
Banker wrote:So have you explored other ways to make cash? E.g. a way to make an extra 50k per annum to help raise deposits and provide servicing for banks? To grow a really big portfolio you also need a good cashflow generator… If you could sort this you could buy as many properties as your heart desires!Hi Banker
Already making plenty and $50k is not going to tickle the banks front door, thats only $200k borrowing power for resi and $120k for commercial and another year to only acheive half a average property.
My servicing is no problem and I can save cash quickly for a deposit but I want to step out of this square and move onto buying triple the amount of properties I am currently buying.So borrowing other peoples money to use as the deposit, if I could borrow a million dollars privately then I could borrow a further $4m from the bank for resi or $2.1m for commercial
I understand your predicament.
Re additional 50k. The dollar amount is not so much the point – point being that aggressive invesment stratergies are always capped by equity or servicabilty or both – therefore how do you make more money and make it faster to feed your property investment ambitions???
How do you make an extra 50k, 100k or , 150k to use for depoists each year?
Common problem.
Re borrowing on second mortgage:
What is in it for the investor if they have more equity in the transations than you?
Will investors see 100% ( or close to it) gearing as too high a risk for 10%?
2nd mortgages at 14% are often subject to low lvr’s e.g. If you have a 50% lend and need a 2nd to get to 70% but cannot obtain bank finance. LVR’s above this on second mortgages are extreemly expensive.Maybe you will find someone with a few $M to give to you for your depoists however Im not sure what your chances are.
I would be brainstorming a few other options to make money that doesn’t need the same level of capital investment: or find an investor who wants to become a partner.
Banker wrote:I understand your predicament. Re additional 50k. The dollar amount is not so much the point – point being that aggressive invesment stratergies are always capped by equity or servicabilty or both – therefore how do you make more money and make it faster to feed your property investment ambitions??? How do you make an extra 50k, 100k or , 150k to use for depoists each year? Common problem. Re borrowing on second mortgage: What is in it for the investor if they have more equity in the transations than you? Will investors see 100% ( or close to it) gearing as too high a risk for 10%? 2nd mortgages at 14% are often subject to low lvr's e.g. If you have a 50% lend and need a 2nd to get to 70% but cannot obtain bank finance. LVR's above this on second mortgages are extreemly expensive. Maybe you will find someone with a few $M to give to you for your depoists however Im not sure what your chances are. I would be brainstorming a few other options to make money that doesn't need the same level of capital investment: or find an investor who wants to become a partner.I know ways to make more money and plenty of it but it means I have to work harder and then I will not be able to focus on my property goal, so this is not an option, I have ways to make good profits from property and this is what I want to do but cash is what I need, If I had $500k spare I could turn it into $1m with very little effort.
It depends on how the investor looks at the deal, if the properties purchase price is $1m and I can get 100% loan from say 2 lenders for $1m, yes I purchased it for $1m and yes it is 100% but the true value of the property is a minimum of $1.250,000 which really means the LVR is only 80%, So there is not as much risk, only 80%, yep you could say you paid a million so thats what its worth but this is not the case because the identical property next door sold for $1.3m and I know that is also acheivable on this property but the vendor was under stress or the bank repo it and I heard about it so thats why i only paid a mil.
I have freinds that know me very well and know what I can and have acheived and have offered me money to invest in property, but one problem there in NZ and I am here and the exchange rate is crap at the moment so if they sent it now and the rate swings the other way well then I will take a good hit, so that is out of the question,
So I guess I will keep looking for other options
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