I need to make some money

newDude

i got some money (inheritace) £160,000 cash. i already own my mrtgage free house (£350,000). My friend told me in the pub at dinner time how hes made loads of money from buying houses to rent out. Could i invest it like this,if i bought 6 houses which are worth £100,000 each BUT only pay £25,000 (6X£25=£150K £10K for legals and stuff) on each and get BtL mortgages?
i don't have any income (incompacity benefit) so i might have to stop claiming this with this windfall before they find out in a few weeks and take me to court. i looked on "Market Harborough Building Society" &do they only lend for one house?the money will make s**t in the bank thats why i need to make more by getting some houses :money:
thanks

Riq

Definitely. What could possibly go wrong?

kiki*_2

Erm what are you going to do if noone is renting them? Pay a mortgage with no income??

I think you should start with one or two not 6!

dotchas

"so i might have to stop claiming this"
:eek::eek::eek::eek::eek::eek::eek::eek::eek:

Wind up ?

Werdnal

Firstly, if you are letting property you have to declare the income, so your benefits would probably stop anyway.

You need to learn what it means to become a landlord - there are a lot of pitfalls and legal stuff to abide by, so just taking the chap down the pubs word for it it perhaps not the best way to start.

Good post to start your homework with is here:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

cjmumto2

I would also start with one and see how you go first before committing to 6. What if they stay empty for a few months or the tenants do not pay rent and you have to go to court to remove them, the tenants may trash them or things may just go wrong. They could all go swimmingly well but I would take it slow

geoffky

....find out about inside track and attend one of their courses..you will be rich beyond your wildest dreams in ten years with capital gains coming out of your ears...good luck...so many people have invested with inside track because they do all the work for you and you just sit back and rake it in...

G_M

I am about to run a seminar on how to do exactly what you describe, but in far greater detail.

Please PM me and I'll send you an invite. The cost for the day is just £876 but if you sign up by tomorrow midnight I'll give you a special, one-off, never-to-be-repeated .5% discount.

Alternatively, get yourself a good book on the subject (free from the library!), and read this post.

googler

Your friend has made 'loads of money' from renting houses out, but you only found this out today over lunch....? How long have you known him? Is this the first clue you've had that he's been a landlord for some time?

You don't appear to be in full-time employment, due to your ... incapacity - but your home is mortgage-free and you have at least £160,000 in the bank.

Put yourself in the lender's shoes - if you were they, would you lend someone like you the funds to buy SIX houses all in one go - when you have no prior experience of being a landlord?

However,

You need to bear in mind that letting out property, and being a Landlord is a BUSINESS, not a hobby. You could lose money from the business, and there's no guaranteed profit.

Since it's a business, you should have a clear, detailed business plan. You may also want to consider looking for a business mentor, perhaps someone you trust who has done or is doing the same as you want to do. Would your friend who's made loads of money at this, be willing to mentor you through your start-up phase, since he's obviously doing really well at it....?

twirlypinky

Yeah sure do it. Mine is up for £89,995 and is a perfect property to rent out - I'd let you take it for £89,990.

poppysarah

What incapacity do you have?
One that would prevent you from dealing with tenant issues in a timely manner?