is because they are savvy investors who happily use
OTHER PEOPLES MONEY.
many people are in the position of knowing the legal
processes entailed in purchasing property either.
Most Investors will also need a LEGAL
advisor to carry out the searches and paperwork required
in the form of a CONVEYANCER.
most traditional form of finance
is a mortgage and you will need a BROKER
to arrange this for you. Unfortunately, at this time,
100% loan to value mortgages are in hibernation, so
for now, depending on your strategy, you may need
money for a deposit which could be as much as 25%
of the on market value.
investors still prefer using the traditional technique
of using their savings to fund the deposit, buying
at near full market value and getting a conventional
Buy to Let mortgage. There is nothing wrong with this
approach, however, this is probably one of the SLOWEST
ways of growing your portfolio and also the most COSTLY.
CHEAPER and FASTER way to grow your portfolio would
be to FINANCE
the deposit funds as well as the mortgage. You could
of course take out secured or unsecured loans or even
borrow from family or friends, however, if you purchase
the property BELOW
MARKET VALUE, there are several methods that can
be employed using
BRIDGING FINANCE and this may even enable you
to purchase without using any of your own money at
all. This would then be termed a NO
MONEY DOWN deal as it uses 100% financing.
property investment game is highly complicated and
it helps to know what you are doing from the start!
It is wise to continue to learn through EDUCATION.
Many amateurs jumping on the property bandwagon end
up leaving again soon after having MADE COSTLY MISTAKES
and realising how hard it can be. It is a good idea
to contact several BROKERS
and BRIDGING FINANCE
providers and have a general conversation with them
about their services to familiarise yourself with
the products and techniques available.