Struggling to get finance for your investment properties?
As discussed previously, the banks or even more so the mortgage insurance companies, are still holding back on loans. Some investors are finding it easy to get a loan, but others are not so fortunate. It could be who you approach, where you wish to buy or other personal factors.
Private Lending
There is the possibility of obtaining funds through private lending and now that the real estate market is on the move again private lenders will be more confident.
You may find a private lender from any of the following sources:
* A friend or relative who is 50+ and does not want to be involved in learning the property market
* A client of your solicitor or accountant
* A person saving to buy a first home but does not have enough to do so and may lend for 5 years, say
Private lending could be use for the upfront deposit and then the banks will lend the rest. To find the deposit you might even use a couple of investors to share the required amount.
Often it is finding the deposit in the first place that is what holds people back from further purchasing. It may not be a case of one person not having the money to put up, it could be that they just want to spread their risk with their investments. If this works successfully, it would not be at all surprising if the investor would lend again on a second property.
At the end of the day the investor just wants a return on their money and if they get that, they are happy.
Filed Under: Interest Rates • Investment Strategies • Property Investment Tips
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