Funding Your Property Investing

One of the common misconceptions about investing in property is that you need lots of money.

It does help, but if you consider how mortgages work, it is often a sensible decision to release equity from your own home at often very cheap interest rates. That’s what I did to get going and the economics are clear – not enough houses are being built, rental demand is so high that the returns on investment, alongside the potential equity growth – give amazing returns.

So understanding that, lenders are keen to support investors through buy-to-let mortgages for up to 75% of purchase price/value, for up to 25 years and some for post retirement age-groups too. Its cheap borrowing for high returns – but it pays to get a basic education before launching into the world of property.

A couple of top tips here:

1 – understand your credit rating through using one of the on-line free providers like Experian, Equifax or Checkmyfile. You will struggle to borrow without a high rating – but you can improve it… for example: by making sure you are on the electoral role; have direct debits set up for unsecured borrowing; pay more than the minimum on credit cards.

2- use an expert mortgage broker who is an investor themselves, who is independent and has access to the whole market. They can find lenders specific to your own personal circumstances – there are plenty out there – some logos below of ones we’ve used. Get a decision in principal before you start looking for the property – then you know how much you can borrow.

Some of the other ways of funding a property purchase include

• Bridging

• Peer to Peer lending

• Rent to Rent / Options

• Pension

• Investors – Loans and Joint Ventures

These topics are pretty specialised but can really be useful opportunities for flexible funding. I always tell people to use expert advisers, people recommended by others too, its really important to learn with trusted people.

I invested in my education over a 12 month period and have a great success story. I’m sharing my knowledge in a webinar course for beginners. This is a taster of some of the information I covered in my recent 3rd live webinar and alongside real examples, I’m giving people the confidence to get started on their journey to a passive income.

If you’d like to watch my free webinar with lots of useful tips and sharing some of my success – or if you know anyone who might be interested then please share.

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