Expand Your Property Portfolio with a No Money Down Deal
Parmdeep Vadesha
October 24, 2008
For a long time now, numerous successful property investors have created and developed their portfolios without shelling out considerable amounts of money and without turning to their bank accounts for the needed upfront payment. If you´ve been planning on expanding your property portfolio but do not have the financial means of doing so, then you might be interested in the concept of no money down property investment. This strategy becomes a practical option as the present situation of the UK´s property market gives investors more chances to grow their investments.
What is a no money down deal?
The no money down technique is a setup that allows you to use the money provided by a lender or an investor to buy investment properties – and not necessarily your own funds. It´s an extremely valuable tool you can use when purchasing properties below market value without putting down your own money up front. This ´no money down´ loan can be achieved by using certain facilities like credit cards, loans, 100% + mortgages, drawn down facilities, gifted deposits, loan to value lenders or by re-mortgaging properties.
Buy below market value (BMV) properties
The key to a no money down deal is to locate genuine below market value properties and borrow against the actual market worth of the property rather than the below market value purchase price. The property to be purchased needs to be acquired at least 17% below its market value. In a typical buy to let arrangement, the equity will serve as the deposit normally put into the property. When buying a property below its market value, the deposit will automatically be in the property as equity once it is purchased. One practical way of finding BMV properties is to buy ready made deals from reputable property dealers who give you the chance to choose from numerous potential below market value property deals. Networking and property networking events as well as the property tycoon forum are also excellent sources for leads.
Financing for your no money down property investment
Many property financing companies offer no money down solutions for investors who want to obtain properties without putting down a deposit. One of them is a bridging loan, a type of loan that entails a fixed repayment date but is often left open. Through bridging, growing your property portfolio can be achieved quickly, most especially if you are interested in buying properties below market value. Aside from bridging, there are many other creative options for financing investment properties using little or none of your own funds. These additional methods are available at the Property Tycoons Community.
What to remember
When embarking on a no money down property investment, investors are usually advised to be honest and straightforward with lenders to avoid losing financing offers. No money down loans often have influence on the criteria required by lenders who normally would prefer that you provide your own funds from your savings. A way around this is to deposit your money with your solicitor who will then substantiate the fact and inform the lender that they indeed have the funds in their account.
Through a no money down scheme, you have the opportunity to create vast property portfolios using very little to no amount upfront. This then sets you apart from the many investors who are still bound to the traditional way of investing in properties.
What is a no money down deal?
The no money down technique is a setup that allows you to use the money provided by a lender or an investor to buy investment properties – and not necessarily your own funds. It´s an extremely valuable tool you can use when purchasing properties below market value without putting down your own money up front. This ´no money down´ loan can be achieved by using certain facilities like credit cards, loans, 100% + mortgages, drawn down facilities, gifted deposits, loan to value lenders or by re-mortgaging properties.
Buy below market value (BMV) properties
The key to a no money down deal is to locate genuine below market value properties and borrow against the actual market worth of the property rather than the below market value purchase price. The property to be purchased needs to be acquired at least 17% below its market value. In a typical buy to let arrangement, the equity will serve as the deposit normally put into the property. When buying a property below its market value, the deposit will automatically be in the property as equity once it is purchased. One practical way of finding BMV properties is to buy ready made deals from reputable property dealers who give you the chance to choose from numerous potential below market value property deals. Networking and property networking events as well as the property tycoon forum are also excellent sources for leads.
Financing for your no money down property investment
Many property financing companies offer no money down solutions for investors who want to obtain properties without putting down a deposit. One of them is a bridging loan, a type of loan that entails a fixed repayment date but is often left open. Through bridging, growing your property portfolio can be achieved quickly, most especially if you are interested in buying properties below market value. Aside from bridging, there are many other creative options for financing investment properties using little or none of your own funds. These additional methods are available at the Property Tycoons Community.
What to remember
When embarking on a no money down property investment, investors are usually advised to be honest and straightforward with lenders to avoid losing financing offers. No money down loans often have influence on the criteria required by lenders who normally would prefer that you provide your own funds from your savings. A way around this is to deposit your money with your solicitor who will then substantiate the fact and inform the lender that they indeed have the funds in their account.
Through a no money down scheme, you have the opportunity to create vast property portfolios using very little to no amount upfront. This then sets you apart from the many investors who are still bound to the traditional way of investing in properties.