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Thread: Property Developing ?

  
  1. #1
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    jonathan's Avatar
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    Property Developing ?

    Hi everyone,

    I was just wondering if someone can give me any advice.

    I am thinking about starting a small business in Property developing. The trouble is, i dont have any security, I live in rented accomadation and i dont have that much money spare to put in to the development. I could afford to pay interest only mortgage payments though but i lack a deposit.

    Is there a way i can borrow the amount to buy the house and the money to restore it so that i can then sell it on and make enough money hopefully to put down a deposit on my next house ?

    I think its a Commercial mortgage or something ? I arent particularly clued up on Property finance etc but im now starting to think about doing something like this as this house thats caught my eye has lots of potential. Its close to where i work in York.

    What do you think is the best way for me to go ? Can i do this by borrowing the 100% house and restore costs to do the project to then sell it on?


    Id really appreciate peoples advice


    Thanks very much

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    jam's Avatar
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    You can try a business loan. But your gonna need a bloody good business plan. A 100% business loan will be difficult if not impossible to get and the interest will criple any profit you feel you can make. However if you use it to gain yourself a porfolio and reputation then it can work to your advantage. Have you not got any mates that could invest?

    You may want to consider a joint venture scheme. Where you contact property developers discuss a joint venture together. Obviously they will be looking for a 50/50 split if not more. Put it to your local property developers that they stump the cash up and invest in the project. You project manage / do the property up yourself and once sold you take a cut say 10%. May not sound alot but once again getting a property portfolio and a reputation is worth far more than money mate in the long run.
    Its a jam thing

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    Thanks Jam, I guess i could try a Business loan, i thought it would be more of a mortgage i would need, I will check it out tomorrow.

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    I can't imagine any of the high street banks loaning you 100% of the cost of purchase AND the money to do it up, especially when you don't have any experience.

    I know this sounds harsh, but how do they know they're not gonna lose the lot?? You're better off finding a private investor, or working for someone else for a couple of years til you have a portfolio as Jam says, and can prove that you're 1) as good as your word, and 2) good at what you do.

    Best of luck with it though!!
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    what you need to do to make money {imo** from property is simple this plan will make you a lot of money it takes 8 years to full completion but not manty can handle that part of it.

    You need to scrape every last penny togethor and buy a small flat, do it up cheeply but well suited to the area you have bought in ie no need for granite worktops in a council estate etc.

    then you need to let this out and use that money to pay for the mortgage whilst you still keep paying the intrest only payments of as well {do not actually pay the mortage off with your rental money just overpay it**
    then remove that money to use the deposit for the 2nd place and do the same, if you stay on 1 property you should be mortgage free within 8 years, but its either living at home for 8 years or paying for 2 houses, but it will make you either rich or very comftable very quickly.
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    I know a few people that do that Jimmy and yes it is very rewarding, i just would like to restore properties and then sell them on, i guess i could rent them out though.

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