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Hey Aleks,
I am in the process of doing something similar.
I would suggest if you are serious about getting into property investing deside on what exactly you want to do. Then write out your own business plan. From the ideas you have and add on to it each week to improve your knowledge an to keep you motivated. This will put your goals on paper and you will be able to see how to get from A to B . I my self have set up a business and loan structure, so all expenses will be tax deductible. Realestate you sell will be taxed as income tax. Do a lot of research, ask questions and due diligence is key. I am still only novice at this but I hope this helps some what.Sincerely,
Keirin SIt’s possible but requires a few years of planning on the right loans and buy structure, lender and most importantly pre-planning…not something you can do off the bat.
Most of our flip clients who’s doing this now full time ( flipping 2-3 properties per year ) had to go through a 12-18+ month planning stage. As the only way to get this across the line without working was to consider the “flip project” as a BUSINESS ie your a professional flipper…
^ As you can imagine, getting the 1st years income is the hardest and hence why we can’t write the loan till a good >12-month after planning with our brokers and your accountant.
Else the easy way out is to keep your full time job and using that income to service the loan for the flips. But at the same time you may want to plan for the ^ above if your wanting to do this full time.
But you can imagine the amount of work required and planning, so really we also pre qualify our clients before we take them on board this flip journey to make sure their financial, mental and desire is strong enough to last the 12-18 month pre planning.
This is the info I’m after! Thanks Mick C :)
The job I’m in atm is keeping me from putting 1000% into my future career (flipping houses). I am all about due diligence, I have read a lot of books and gone to a few seminars.. I was thinking of doing the “renovating for profit workshop”. I have set up a company an discretionary trust for flipping houses and my first project will be my dad’s house with a 10% renovation budget of the current value of the property ($450k) then will buy my first investment property with aprox. 100k savings. I am in the process of putting together a business plan and a hard copy of my due diligence to find, filter & buy property.<div class=”d4p-bbt-quote-title”>renov8r wrote:</div>
There has to be a loopol in the system somewhere.. This Can’t be impossible ! Surely someone has done it before.??Lenders won’t be keen on these loans even if you had a job – short term soon to discharge. Brokers will not be keen as they have to give any commission back to the lender.
All you need is a stable income source – and dreams about income from flipping don’t count, need strong evidence of success
Thanks for you imput Terry,
Also I am a qualified carpenter. Is there a way were you could prove that your earning your income from the job that way ? By sub-contracting to my investing company?There has to be a loopol in the system somewhere.. This Can’t be impossible ! Surely someone has done it before.??
Thanks for your response guys helps out ! Keep it coming :) also would a garentor help with the situation ?
