As you probably know, you need a deposit to buy an investment property. So what happens when you don’t have a deposit? Well its simple – you just borrow it! I did this a few years ago, to the tune of £100,000 or so, invested it wisely and now never have to work again.
For those who want to find out the ‘nuts and bolts’ on how the figures work then read on…
The way you derive an income from a property portfolio is to buy POSITIVE CASHFLOW PROPERTIES. This means the rent covers:
1. The mortgage
Rent per month £400
To buy a property like this you need a 13% deposit working out to be £5,200. When you include legal fees you need about £6,000 per property. I have found a lender that will lend £25,000 to most applicants at 5.7% APR. With £25,000 you could buy 4 of these properties. This would give you the monthly profit of: 4 x £115 = £460 per month.
To apply for this loan then click here and fill out their easy form.
Posted on: 26th Feb 2008