Danny - honestly if you cant cashflow your own home at present - its not a good idea to try to cashflow an investment property. Once you are back to nearly treading water with regards to your personal income , perhaps then you should consider making investments.
Hi it is important to build a good credit record to make it easier. You can do lots of other things to raise cash as one person has suggested. -become a property sourcer, etc. -(the Ahuja group has a course)
If you can save a little say (1,000) and start moving this money around your credit cards every month i.e paying off say one with the other one before each bill is due it creates a 'footprint' i.e in terms of building a good credit record and you will be surprised how quickly you will be offered a higher limit and in some cases more cards etc.
Still not going to be easy even if u sort out your credit report. I have an A1 credit rating & 2 rental properties worth £170k with 100% (i.e. currently no mortgage & bought for cash) equity in them turning over £900/month positive cashflow & I have been refused finance to buy more property all over the place as I am not working due to disability. 99.9% of lenders out there now want £25k min earnings as a back-up on top of a positive 130% covering of all purchase & unning costs, an A1* credit report & for u to lick there u know what all because they messed up!!! But good luck anyway.
That's one good reason you won't get a mortgage - you don't have any history of managing debt. BTL lenders want to see managed debt and they don't care one jot that your rental properties are owned outright.
As my initial reply done as a quickie (& no one needs to know the ins & outs of my life), however to reply: my history with credit is long having had 3 previous repayment mortgages & having paid them off over the years (last one £80k paid off in 2008) & also had several (£10k) loans & paid them off also over last 20 years, my credit history is long & faultless.
However, this was all done when times were good at the banks & I was hard at work in full employment, things have changed on both sides of the fence & even with a very good previous (& proveable) track record the lenders are looking at me with different glasses and I am having problems raising finance, up to now 38 refusals. So don't believe all the hype, I don't say this to discourage anyone but financing is hard no matter what you have stored in a credit record, the thing is don't give up; eventually a lender will see the light & that's all any of us need. One inital break & the ball gets rolling. Good luck & best wishes.
hi all yes anyone can get into property you dont need good credit or masses of cash you just need to be creative .my advice would be to look at sourcing property and also look at options both of these methods dont need cash as ive done them just as a example on the properties im dealing with now it is a total of 160 properties with a aprox value of 11 million plus which im passing on to another investor i should hopefully make aprox £400,000 just from this deal and all it took was one phone call and one meeting aprox one day spent on this deal . lease option deal property value £110,000 agreed purchase in 5 years time £115,000 tenant agreed purchase price in 5 years £125,000 my profit £10,000 in five years time mortgage £167.00 per month tenant buyer deposit of 2% =£2,300 rent in area £500 per month tenant buyer agreed for the privalage to pay rent of £650 per month only cost to do this deal are the option contract **** ****option contract cost me £750.00 tenants deposit £2,300.00 profit minus the option contract.....................................................£1,550 cash back mortgage minus rent £167.00 - £650.00..cash flow per month....£483.00 per month SO NO EXCUSES GO OUT THERE AND FIND THE DEALS REGARDS DERNI tcproperty8@aol.com
