Hi everyone,
My name is Michael and I am new to this site as I have just finished reading both of Steve McKnights books – $1,000,000 in Property in One Year and From 0 to 130 Properties in 3.5 Years – in the past week and I am very excited and passionate about commencing our property investment portfolio.
However, having been a small business owner for 12 months, with sales of almost $800000 in 6 months, and then having to cease trading due to my fiance being diagnosed with Leukemia almost 5 months ago and currently not earning an income due to having to care for her, resulting in zero available cash on hand for deposit and no visible prospects for receiving 100% finance to commence our portfolio, I am lost and in DESPERATE need of some guidance as to how I should approach my situation and obtain finance.
I have found dozens of Buy N Hold positive cashflow properties across Australia, using Steve’s 11 Second Rule, along with numerous other properties that I could either flip or wrap to obtain positive cashflow but without the initial finance to start, I am unable to capitalise on my property research.
My goal is to obtain 30 positive cashflow properties within the next 6 months to supplement my non-existing income so that I may care for my fiance.
If anyone could help in this situation or know of anyone who would be interested in financing our investment property operation, I would gladly appreciate it.
Thankyou and GOOD LUCK to everyone determined to create wealth through investment properties. Never ever give up. I won’t!!
Michael
Michael,
If attitude was enough then you are there.
But it isn’t.
You either need a substantial deposit 20-30% or a demonstrable income stream to service the loans so as to use a conventional lender.
Can you continue to run your business with a partner? Would free up time. Also seems a shame to walk away from something so valuable.
Can it be sold?
You could do something with partners but in all honesty you will find the 6 months building the portfolio and then managing it to be as busy as your business – especially if you are relying on third parties to help finance it (and take their cut too). If it is time you need then I can’t see it coming this way.
Sorry I cannot be of more help.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thank you for your reply Simon.
What about Deposit Bonds? How do they work?
If I was to obtain security for the loan through the equity in my mother-in-laws house totalling $660000, how would this improve my chances? Any recommendations on the best approach in relation to accessing the equity in her house so that she would ultimately benefit? ie – Line of Credit, Refinance…..? I didn’t mention this fact earlier as it is definitely a delicate subject and would have to be detailed to the minute detail before any approach could even be considered.
I have thought about the option of Bird-Dogging but apparently you have to be licensed. Therefore, I am attending a Real Estate Program next week to become accredited with an Agent’s Representative License.
Some of the properties that I have found are already tenanted and returning a $30-$50 per week positive cashflow rental return.
Any help would be greatly appreciated.
Thank you
Michael
If she is happy to finance you then you can get the ball rolling. She should be confident she understands any risk tho. She should speak to her accountant/solicitor before comitting any funds.
I would not let her be your guarantor. This will make her responsible for your actions.
Rather she should borrow enough to get you started against her own home and then simply gift/lend it to you. This limits her downside to the actual amount should you dissappear or bankrupt etc.
You then use this money for deposits. If you have an ABN with your business then 20% deposits should be enough. ie with a loan of $100K you can buy $500K of property (I didn’t factor in costs in this simple example).
You should aim to get to a point where the growth in equity funds the additional deposits for further purchases.
This is a very simple example – not a financial plan of any description.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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