8 Ways to Raise Funds For Your Next Property Investment
Posted on 5th September 2018 at 14:03
One of the biggest problems that property investors face is finding funds for their next project. While you may have ambitions for several buy to let properties or are looking at a more ambitious buy to build project, there’s no doubt that delays in financing can seriously work against you.
To help out, here are ten possible sources of investment that can help you get to your funding target easier:
1. Employment Income
Many investors still have a day job. Unless you have reached a stage where your property investments have become self-sustainable, you’ll need that reliable income. Putting aside money such as bonuses, overtime or commission payments and the like will soon begin to add up. It’s certainly not going to provide all the funding you need but it’s a good start.
2. Loans From Friends and Family
Although there’s the old saying: neither a borrower or lender be, it’s largely unavoidable if you are into property investment. Getting friends and family involved in your investment has potential. You do to make sure that they have a clear idea of what you are trying to achieve before expecting your nearest and dearest to take a leap of faith.
3. Sell What You Don’t Need
Of course, it depends on how much you have but selling off those possessions you don’t want or don’t need anymore can also help raise useful funds. Check out the garage, the attic, the shed, wherever you can. A lot will depend on what you have squirrelled away but you shouldn’t underestimate the amount you can raise online or at the local car boot sale.
4. Credit Facilities
Most property investment means that you need to undertake at least some construction or modification work to get house or flat up to spec. A number of construction businesses nowadays offer credit terms for the work they do and this can mean you don’t have to find immediate outlay for everything that needs to be done. Be careful, however, and choose a company that has a good track record.
5. Make Use of Bridging Finances
Bridge loan companies and organisations are often more flexible than straight mortgage companies and some can make their decision on the value of the property rather than the purchase price. You can also sometimes loan depending on a second property, something that gives you a little more leeway.
6. Utilise Home Business
Gearing your work life to generate more capital can give you a different perspective when it comes to property investment. It’s relatively easy (and cheap) to start a home business nowadays. All you really need is a laptop and internet connection to start freelancing, sell stuff and build a little extra income to funnel into your property buying business. It does mean you can end up doing two jobs but you will be bringing in extra money to put towards your investment.
7. The Power of a Joint Venture
It can be difficult to raise money when you are doing it all on your own. Entering into a joint venture with someone who has the funds but not the experience is another option. While you need to get the legal side of things sorted before you begin this kind of relationship, it could well provide a significant amount of funding if you choose the right partner.
8. Looking for the Best Financing Deals
This can depend on a lot of luck but there are deals around that can make a big difference to your property investments. One investor, for example, took advantage of 100% financing available for apartments from a bank after the developer got into financial difficulty. Examples like these can be few and far between but are well worth keeping a look out for.
If you are thinking of purchasing a property for investment, whether it is your have a portfolio, contact us today on 01604 644 449 to find out how we could help you.
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