Is this possible?

darrendonald2

ognum wrote: »

OP you know there is a reason that you are not supposed to become over your head in debts and loans!

I care not if you do this to yourself but if you are over leveraged you put your tenants at risk of losing their homes. think about them before y ou do this, if your buisness model was working so well you wouldn't need this money.

That is very true. However I am achieving yields that are so high that the opposite is true. I am not over leveraged at all. One of my properties cost £113,000 and rental income is £1700/month. I am very profitable which is why I am open to new and legal means of growing faster, sticking to my simple, conservative plan.

darrendonald2

BitterAndTwisted wrote: »

"PROFIT: £130.59/month (without using my own money)"

This is a business-plan that's going to lead you to only one place: financial disaster

I shouldn't have used the word "profit". That is not profit but an illustration that income covers loan when we assume a fixed mortgage, a guaranteed tenancy and not boiler breakages! I have other income to support maintenance but there is always risk.

One thing I have to disagree with you on, it is not CERTAIN that this will end in financial disaster. It could, but it may not! I used to take massive financial risks and that is why I was able to retire at age 32. Everyone told me I was stupid and they still are!

darrendonald2

morgan78 wrote: »

me and my friend brought a property last year to rent out, with a 25% deposit 12 months later we remortgaged and took money out to enable us to buy another one, might be an option

That's great that you could do this in today's climate. Did you actually add value to your property or simply move to a 85/90% mortgage?

darrendonald2

sulphate wrote: »

No, like criticsquid said you are required to show where your deposit has come from and any bank or even solicitor would probably become suspicious of £15k being deposited in your account seemingly from nowhere.

Absolutely. It has to be above board and that is my reason for posting the question. Just in case I don;'t know something that you guys do.

AlexMac

Out of interest, where are you getting rental yield of £1.7k per month- over £20k p.a., or an amazing 18% gross, on an investment of £113k? I though I was doing really well getting £875 pm or 7% on a flat which recently cost me just over £150k in suburban London, as yields of 4-5% are more common.

And if you're so clever how come you ain't rich?

DCFC79

darrendonald2 wrote: »

Yes. But I am also aware that there may be something (legal) that I don't know. I think money "saving" forum is probably the wrong forum for this question though!

You might need the " How to lie to a financial institution " forum.