Hi..i have about $30,000 to start with.im debating to put it into say 3 properties or just the one.What im not sure about yet is how to get the deposit for the next property.Is it reccomended that you put your positive cashflow into your account to save for the next property?As it stands it just seems like it will take along time to come up with the next deposit and so on for further properties,hence not getting a return in your pocket for a while.Or when you have owned these properties for a while is it more common to borrow against these properties?I would be very grateful for any answers available.
Thank you.
Have you read any books, attended any seminars, spoken with any investors or done any research at all?
Byronent
Adelaide SAHi Styla2001,
It varies where your get your deposits from…
* Cash/Savings
* Equity
* Other forms of security (being a security tied to the new investment property)
* Shares (stocks)
* family – friendsPersonally were i get my funds from, is from option trading, as in the form of option price appreciation + Releasing Property Equity, in purchasing more property, and repeating the cycle..
the 2 fastests ways i gain cash deposit, are definelty, cash being released from the properties equity, + a very heavy load of option trading that i do.
I have only ever sold one property, to help push and further the momentum of cashflow and deposits.
Though as for serviceability, i do a system that is called off-set gearing + cash deposits that are enough to turn a property positive cashflow, but can be offsetted against negative geared properties..
Cheers,
sisps.. i also put some strategies in place, to ensure funds are also available and that can be released almost immediately
Originally posted by Still in School:fastests ways i gain cash deposit, are definelty, cash being released from the properties equity
Please detail this process both for the education of styla2001 and for my own amusement…
Hi Foundation,
What i mean by that term is, drawing a LOC (line of credit) or refinancing that investment property loan, and taking those cash proceeds and using the new cash that is available, as new cash deposits, to purchase the next investment property.
Cheers,
sisOriginally posted by Still in School:refinancing that investment property loan, and taking those cash proceeds and using the new cash that is available,
I don’t think you’re actually ‘taking those cash proceeds’ at all. I think you are using a percieved increase in value as security to take on additional loan liabilities – yes, yes?
Still in School,
Thank you to people like styla2001 who ask the questions, and people like Still In School who take the time to answer them.
Many others benefit, including myself. Obviously we are all at different stages of learning, and your intelligent answers and excellent information are much appreciated.
Thanks again sis,
Regards,Sharon
Hi Foundation,
it varies from property to property..
per example..
if you have a positive cashflow property, with equity, then the extra cashflow, can be used to service more borrowed money, where the borrowed money, can be used as the cash deposit, (but in true reality, your borrowing at a much higher gearing.. more closer to the 100% and over mark.) and with that extra cashflow, it can offset, the extra amount of loans you put against that property.
though in some cases for me, if i purchase a property, that is a steal deal property, it has been better off, using other forms of collateral as security instead of cash.
One other way, i forgot to mention to purchase properties also was, if your a first time, you can purchase a first home on FHOG and then turn it, into an investment…
** this is something, i have also done, very minimal out of pocket expenses, and minimal legal costs..
Cheers,
sisAlong with other things partnership is one of the best way to keep on buying properties.
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]
MSN ID: amitash, Yahoo Id: bornguruNZ loan pre approval from OZ in 48 hours
Oh a very clever technique Property Guru taught me..
** though i have to be ssh ssh on it, and no i havent tried yet.. but tempted.. **
Cheers,
sisIf you can keep coming up with the deposits, you can always find finance.
Others have also used:
– deposits received from wrapping
– option fees from selling options on the proeprty
– personal loans (not good, as the rates are high and amoutns limited)
– credit cards (Oh no!)Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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