Hello,
I’m still struggling to enter property investing since I don’t have any equity and not enough cash for both deposit and closing costs. I don’t have any relatives or close friends who’s equity I can use and I can’t find any partner I would feel comfortable to go into business with. However, I do have a some friends who have equity in their home, don’t need it themselves and don’t want to invest. They are also low on cash-flow. I’m looking to buy a house on a big block, move a removal house onto the block and subdivide. This will add enough value to cover the equity I need to get started. I am thinking I could “rent” my friends equity for 6 months and offer cash in return. When the subdivision is finished, I’ll re-mortgage the property to release their equity.
Has anyone any experience of this?
How much is reasonable to offer as compensation?
Are there any flaws in my reasoning?
Please advice.
Cheers
/HoBe [upsidedown]HoBe
have you costed the complete deal?
Why not involve your friends by offering it as a Joint Venture proposal?
Have you spoken to one of the great Motgage Brokers here about your options?
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorCheers redwing,
yeah, I’ve considered partnership with them, but I’m not too comfortable with that solution. We have very different goals and approach to money.HoBe
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