Is this possible?

darrendonald2

happycamel wrote: »

Remortgage a property you'd paid some capital from or save that £130 a month from how ever many properties you have. The mortgage company want to know you have a stake in the success of the property. Also, I'd caution you against seeing the £130 as profit, it needs to cover building maintenance, any service charges, tax, insurance as well.

Yeah I didn't mean that the £130 was profit to spend. I have reserve cash for maintenance on my properties. I was just illustrating that the income would cover the loan(s). Thank you though for your comment mate.

darrendonald2

pauletruth wrote: »

that sounds good until interest rates go up factor a 2% increase in interest and see if its still viable the how do you cover the periods when they are empty or need work.

plus its fraud to lie on a mortgage application. go slower and build your empire with your own money.

Rates would be fixed ahead of time so no risk there. Me and my cousin have about 15 properties and are actually pretty conservative with our risk tolerance.

darrendonald2

redpete wrote: »

So it costs nothing to maintain or repair the property? What happens if/when interest rates rise, or you can't get as cheap a deal in 4 years time? What happens if the property is empty with no income for a few months? What happens if the mortgage lender does somehow find out about the other loan and pull the mortgage?

Is this a surprise? They have no security against the loan, no quick access to the funds if their circumstances change, no redress if your business plan falls about your ears and you can't pay the monthly amounts,

As per my last comment, I would fix rates for 4 years. My friends have the biggest security, they know that I never default! I just wouldn't let anyone down, I couldn't live with that. I've borrowed tens of thousands before from individuals and always pay early. But, the recession has made people more wary, understandably.

darrendonald2

JuicyJesus wrote: »

Sounds like the friends are more sensible than he is.

Also should be pointed out that there is absolutely nothing in it for them. No profit or other benefit for them, just a credit report that shows they're massively indebted and a possibility that they could get royally f*cked should OP decide on a whim that he doesn't want to pay back the money. Whoopedy doo, where do I sign?

The whole scheme is moronic.

Why am I not sensible?

I've never been in debt in my life, borrowed multiple times from people and never once defaulted and have a solid port folio bringing me a passive income.

Not everyone wants property and some people want to earn 10% on their money which I would pay. I would make damn sure I had the means to pay back if things went wrong, I would downsize and work 24/7 in a heart beat before letting anyone down. Why am I defending myself, perhaps this is the wrong place to post this question.

darrendonald2

ILW wrote: »

Makes £130 pm. One boiler breakdown would wipe out a years profit. Seems a little shaky with no cash reserves.

That is true but thankfully I have reserve from other properties and unrelated incomes.

darrendonald2

jonesMUFCforever wrote: »

Me thinks OP is a troll.

I could say more but probably would only get banned here if you know what I mean.

What's OP?

darrendonald2

Moneyineptitude wrote: »

The fact that the OP duplicated his post onto another forum is likely evidence of you being right.

There were two sections that related to my question. That is why do I duplicated it.

notanewuser

darrendonald2 wrote: »

I've never been in debt in my life, borrowed multiple times from people and never once defaulted

.

You do know that loans from friends and banks and mortgages are debts, don't you?

gazman100

Like Noel Gallagher once described his younger brother "He's like a man with a fork in a world of soup".

clear_as_mud

Why can't you just save up your own money for a deposit like a normal person?