Now back when I first bought my very first investment property, the right way,
I had no money to purchase that property.
I’d spent all the money I had in savings on training courses, getting a mentor and a coach on board to help me achieve what I wanted to do.
That meant all of my savings were gone.
I did all the hard work as I was told, followed my coach’s instructions, my teacher’s methods, and I found an amasing deal.
Only I had no money to purchase that deal.
Now, before I go any further, I just want to say that I’m not a financial advisor.
I can not give you financial advice.
You’d have to go to a properly regulated and fully licensed financial advisor for anything further in that sense.
However, what I will do is I’ll tell you how I did it and how you still can do it today, in the way I did and still do it
So, I found the first property that was very, very cheap, below market value is what we always say we’re looking for in our But To Let (BTL) investments.
And I had the offer accepted.
Now, I could get up to 85% of that lending on that property. So that was that was great.
85% means I nearly had all of the money I needed.
I only had to find 15% of the purchase price and some costs.
So 15% of whatever it is that I was trying to buy, let’s say it was a £50,000 purchase property.
I needed to find £7,500 for the deposit (15% of £50,000 is £7,500).
By the way, YES. you can still buy properties at £50,000 currently in certain areas.
in fact, one of my Mentees has just secured such a deal.
So this is doable today.
Now,there was £7,500 to find for the deposit.
I had a little bit of refurb to do on it. Back then, the refurb was very minor and it was probably around about the £5,000 mark.
And then I had some solicitors’ fees to pay and some brokers’ fees, etc etc .
So I’m probably in reality looking at something like needing £15,000 to purchase and do the works to buy the property and
I didn’t have it. I literally didn’t have £15,000.
So that’s when the creativity and the teachings came in.
The things that I was taught by my coach and my mentor helped me achieve this purchase. With out their help I probably would have walked away disheartened and lost the £3,000 a year that property would bring in .. if I had this property over 15 years that means 15 x £3,000 … £45,000 I could have lost out on
I was very fortunate because I had a very good credit score.
So, I could get credit and I could get a credit card that would lend me some of that money. The cards even had a 0% for 12 -24 months option.
So of that £15,000, I could manage to achieve somewhere in the region of £10,000 borrowing if I wanted it on my credit cards.
Now I’m about £5,000 short at this point.
I could then go for a bank loan if I wanted to and just get a standard bank loan from my bank, which would cover that remaining £5,000.
So that effectively is one way that I could achieve to purchase that property.
Another way, and this is the way I did go, is I had a couple of people that I met during the process and they were very interested in doing property, but didn’t really want to physically do it themselves.
They told me that they would be happy to lend me, sometimes we call it Angeling me, the money so that I could then purchase the property.
they were prepared to lend me the £15,000 that I needed in return for an interest payment to them for 12 months .
What that meant in that situation is, they wanted 10%.
The nice thing here is that I didn’t have to go anywhere else.
I didn’t have to get a credit card.
I didn’t have to get a loan out,
Now both the Credit card at 0% and the Bank loan at 6 or 7% are a little bit cheaper . These were the offers at the time of interest on loans, but these guys were happy to lend me the full amount for 10%.
And that was rolled up.
Rolled up means I would pay them that 10% at the end of the period.
I would buy the property, do it up, refinance it, and within 12 months give them back the £15,000 they let me plus 10% on top of that, which is another £1,500 interest payment.
And that’s how I purchased my very first property, very creatively and without any of my own money.
You can do this too
You are able to do this in the current climate right now,
There are properties like this out there that you can buy in this way.
If you want to know more, let me know, but go otherwise, go and do it.
Email me at [email protected]
You can do this and you can smash it.