If you live in Australia, particularly Victoria, perhaps you have noticed the investment boom around you. Perhaps you live on another continent but have overheard discussions of the housing boom and property investment opportunities. Either way you likely want to cash in on the deal while it's still growing, otherwise you wouldn't be here reading this article.
If you really want to capitalise on this property investment opportunity, you will want to find ways to invest in several properties. You may already know of a few ways to do this. But by using many different creative financing sources, you can go from two properties to dozens - but how can you accomplish this?
Creative Financing
There are three things you need to know in order to get started. If you really want to be a successful property investor and increase your portfolio you need to be educated on the many different financing techniques available to you. You need to know what these techniques are and have a few examples explained to you. Then you need to know how to find the right independent financial investor who can provide tailored service and advice.
In order to be successful in property investment and increase your portfolio significantly, creative financing techniques need to be used. Creative financing is a term used by real-estate investors and it refers to non-traditional real-estate financing techniques. These techniques are not commonly used.
Creative financing can help you to buy properties even when you do not have (or are unwilling to use) your own capital to do so. One way of financing your investments is to leverage other people's money to make your purchases.
Creative Financing Techniques Examples:
Simultaneous Closing: This gives the seller financing without having to actually take out a mortgage. At the time of closing, the title is handed over to the new buyer and at the same time, the mortgage is sold to a note investor as a cash sale.
Subject-To: This is a creative finance technique where the buyer can obtain the title to the property without having to procure a note. The seller of the property in question keeps the existing financing in place - this way, the buyer does not need to pay any of the loan fees or transaction costs. This is akin to assuming a loan; but beware - this is done without the consent of the financial institution which issued the loan (which violates the terms of the original loan).
There are other creative financing techniques available, including - land trusts, private mortgages, hard money loans, owner carry back, seller seconds, credit partners, retirement accounts, 1031 exchanges and many more.
An independent financial advisor can assist you with their expert investment advice. These professionals can assist in many ways:
Can assess your borrowing capacity.
An advisor has the insight into the lenders guidelines.
They will have ideas to determine which lender will view your request favourably.
Save you time by performing the research for you.
Explores all the options that are available to you and can help present the right ones for you to choose from.
They can show you opportunities which you may not have been aware of.
Organises the entire loan process for you.
Look after your best interests and help you to avoid lending pitfalls.
Assist you in many ways, even after the loan process is complete.
Personalised service.
They can show you techniques which will save you thousands in the long run.
By utilising an independent financial advisor you can usually have access to special services or insider secrets which lending companies can withhold from you. These techniques can enable you to creatively find financing that can aid you in procuring properties and increasing your portfolio.
So if you really want to capitalise on the property investment boom in Australia and you need to know how you could finance your investments, consulting a financial advisor and searching out creative investment ideas will aid you in increasing your investments . Just imagine, you can go from owning just 2 properties to owning up to 20 or more inside of 2 to 5 years.
About the Author:
Author: James L. Hardcastle shares secrets about buying multiple Australian properties on the website where he explains extensive knowledge regarding property investing in Australia.
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