What are the experienced investors doing?

Viewing 4 posts - 1 through 4 (of 4 total)

Comsol
Participant
@comsol
Join Date: 2003
Post Count: 38
November 12, 2003 - 4:46 am
Hi Everyone, []
Had a question from another investor that some of you more experienced investors could help with.
“When you are purchasing properties do you put down 20% deposit like Steve did or do you borrow the whole amount. With Townsville I have borrowed the whole amount against our house as I thought that would be the most tax effective way to go but if I just got money approved as a line of credit on our house and used that as a deposit and borrowed the balance against the property I would be able to purchase more properties as eventually I will run out of equity in my house. But, if I borrow more than 80% of the valuation of the property I have to pay mortgage insurance.
Can you please tell me what the experienced investors are doing out there?”
Any suggestions?
Cheers,
David [?]
OPM – use Other People’s Money and learn from Other People’s Mistakes
[email protected]
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
November 12, 2003 - 5:16 am
David
The normal set up is exactly as you have suggested.
Use a line of credit secured against your own property and then obtain funding on each security to a level of 80% of the purchase price / valuation.
Depending on property valuation and the price of those properties you purchase you maybe limited to the numbers you can do.
We have to date completed 126 and hate to tell you its about putting in hard earned cash and other security when the line of credit on your house is used up.
Cheers Richard
[email protected]
http://www.fhog.com.au
There is no such thing as a problem.
Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
Comsol
Participant
@comsol
Join Date: 2003
Post Count: 38
November 12, 2003 - 6:33 am
Thanks Richard,
I’ll pass it along.
Cheers,
David []
OPM – use Other People’s Money and learn from Other People’s Mistakes
[email protected]
Melanie
Member
@melanie
Join Date: 2003
Post Count: 382
November 12, 2003 - 7:30 am
Hi,
Richard is about as experienced as they get! Another great option that about 90% of the experienced ‘wealth coaches’ at a Peter Flannagan seminar I went to used was JV’s, linking cash-poor with time-poor people, particularly in short term projects like renovations or constructions.
Good luck!
[]
Mel
[email protected]