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Showing results for tags 'financing'.
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Upfront Rent for Landlords
michelleknowswell posted a topic in General property discussionHey everyone, We are quite new to the market, and already have a few landlords who use our services. We provide upfront rent to landlords, and will soon launch flexible payments for tenants. Please check us out if you have any interest. All feedback or questions would be greatly appreciated. Hoping to hear from you soon! Kind regards, Michelle. 🙂
New to property investing Scotland.
jordanskelly posted a topic in Introduce yourselfHello everyone! Let me introduce myself, my name is Jordan. My brother and I have recently decided to get into property investing, creating a Ltd company called Best Step Property Ltd and buying our first buy to let. After both being made redundant in 2019 we decided to work on a plan together to help us put our future in our own hands, rather than someone else's. We decided to step into property after around 6 months of researching, reading books, listening to podcasts and speaking to friends already on their property journey's. After months of saving we are at a point where we can start investing properly. As I mentioned earlier, we have had an offer accepted on our first buy to let property and we are looking to add another 2 by the end of 2021. We live in Scotland and are looking to invest in Dundee and the surrounding areas. We have put together a plan for 2021 and with hard work, dedication and advice from you guys we are hoping this can be achieved. We are currently seeking advice from a dedicated mentor who has vast amounts of experience in property. Specifically, buy to let's. If anyone can help or point us in the right direction it would by greatly appreciated. Looking forward to sharing our journey with you guys! Thanks.
Alternative Financing Options?
Nick Smith posted a topic in General property discussionHi, I’ve identified what I think is a decent opportunity for a flip however I’m struggling to come up with a financing solution that would deliver a decent return working within the constraints I have. The numbers are below and the constraint is that due to being in the middle of another project at the moment I have little cash to invest - usual story! Purchase Price: £220k Stamp Duty: £8.5k Legals/Holding: £5k Refurb: £13k Potential End Value: £270k The numbers ive used on purchase price and sale are conservative and I’m pretty confident on the refurb number also and as you can see there is a potential £50k uplift and just short of £25k profit. Ive not used bridging before but think from reading around it will require cash down, I’m also not sure whether the costs would bring the profit down to a level that wouldn’t make it worthwhile. I’ve also considered the JV/Angel Investor approach however on a 10% return (which seems standard) of total investment this would pretty much wipe out the profit. So before I file this one under “nice idea but not feasible” does anyone think I’ve missed a potential approach? Thanks PS: Posting this in a couple of areas as not sure where it sits.
Financing my First Project
Adam McGowan posted a topic in General property discussionHi everyone I am looking for advice on how to finance my first investment property. At the moment, I am time rich but do not have the cash required for a standard deposit. I understand many people use JV deals to invest in property. However, since I have no experience as of yet in investing, if someone wants to put their cash into a JV they will want their partner to bring the skill set which I cannot. I also do not have any family members or friends who have the money to invest. It makes me wonder how people without the experience or cash can form a partnership with someone who has the cash. Is a Joint Venture still the answer? Thanks in advance
Financing new build
Richie Greeves posted a topic in General property discussionHi all, I'm in the early stages of setting up a company for building modern homes in a very popular tourist destination in Spain. My business partners (who already have experience as they have done similar projects in nearby locations) and I have already bought various plots of land UMV. Wewould use the same building team as they have used in their other projects and have various estate agents who seem really interested in our project. Our problem that we encounter is that we are looking for a loan 120k/€ but our loanee has had some problems and won't be able to loan us any money. Our terms are 10% roi on the 120k over 2.5 years.Our collateral is that if we don't give the money back the loanee would be the sole proprietor of a house worth 220k/€. So my questions are : 1- where would you recommend looking for alternative financing?(for cash-flow issues we are trying to stay away from banks if we can) 2- which flaws can you see in our "business plan"? Many thanks for your time.
Morning, Need some help in understanding my financing options under my current circumstance. I purchased a property at auction on Wednesday and looking to complete the purchase via my limited company set up to purchase property. As with all auction properties, I have 28 days to complete the transaction. I'm now at 24 days and counting. Couple of notes: - This would be the first property purchased within my limited company. - For employment I am relatively new to contracting (6months working in a contract role) after taking a break from employment for a period a year. Contracting income goes into my other limited company. I haven't filed my first year accounts for my other limited company yet and draw minimal income from my other limited company set up to take my employment / contracting income. Ideally I would like to finance the transaction via lending - need your help in understanding my options and what is the best way to proceed: 1) Purchase cash I am able to purchase the property cash via a directors loan from my personal savings to my limited company. I would then like mortgage it as soon as I can to release the equity and use that to fund future purchases. I know about the 6 month rule. My question is 1a) Is this a valid option? 1b) Is it relatively straightforward to mortgage a property originally paid for cash after 6 months in order to release equity? 2) Purchase finance / mortgage I'm now at 24 days to complete. What are my options for financing the purchase? Bridging seems to be an expensive option as 6 months would be costly. Bridge to let seems to be a good alternative, but I don't know much about this option. I'd probably need only 1-2 months bridge to do minimal work on the property. 2a) Has anyone used Bridge to let? Is it a relatively straightforward option? 2b) Any recommendations on bridge to let lenders / mortgage brokers? 2c) Would it be likely under my currently financial circumstances / minimal evidence of income / short history of contracting i would then be able to arrange a mortgage after a month or two? 3) Any other advice / options I could pursue? Let me know if you require any other info. Thanks a million for your help, Dhiren
How to buy USA property and raise finance?
Russell P posted a topic in General property discussionI am considering buying property in the USA as I see it as a better investment than UK at the moment. Can anyone break down for me how taxes are paid as I am based in U.K. and also how is it best to raise finance as it seems difficult to raise in US without social security number.
Raising Finance for a BTL
michael barton posted a topic in Newbie Advice & SupportHi. I am a newbie investor looking at raising finance to purchase my first BTL. I do not have a deposit as such as all my funds have been used to purchase and renovate my current home, but do have about £1800000 of equity available. My mortgage on my home is now out of its fixed period, so I am looking at re mortgaging to raise finance for a BTL. My line of thought is to take out an offset mortgage for approximately £160000. This would leave me around £120000 in cash to make a purchase with, without having to pay interest until it is used. It would also effectively make me a cash buyer for the market I am looking at. I am hoping to buy something I can add value to, rent out then set up on its own mortgage say six to twelve months down the line. Ideally I would then like to repeat this process depending on available funds. My question is this, has anybody used this type of mortgage before and is this strategy feasible? Your thoughts and feedback on this would be much appreciated. Thanks in advance Mike
Where do other investors park their cash?Hi there, I wanted to ask other investors how they manage six figure cash lump sums, say £150k? I spent a bit of time looking today and got as far as; - £30,000 premium bonds (as a higher rate taxpayer) - £20,000 in a Santander current account paying 3% taxed (small admin burden of managing two direct debits) - £15,000 cash isa (from June onwards) The cash needs to be readily available to fund new property purchases (within 21 days). Also, do any of you operate with a cash 'buffer' eg comprising x months voids per property, x% interest rate movements or x% LTV? Or would these vary in response to your external environment. Thanks in advance. Regards Stuart