How much of a gamble to take??

[Kevin]

Originally Posted by kaz123

So kevin... what are your plans then??

Hi Karen,

Well...I am in the midst of selling my house at the moment. If/when it all goes through, I will have some spare equity to put towards this venture. If the sale drags on too long I always have the option of re-mortgaging to release the equity. Fate, luck and timing will play a big part in which avenue I go down. The end goal is the same, to raise enough cash to get the ball rolling. Every snowball begins with a single snowflake as they say, and this is the first time I have been in a position to gather enough flakes together.

The equity will not be huge, so I have no option but to start on a very small scale, which is fine by me. The learning curve will be steep to say the least and I don’t want to bite off more than I can chew right at the start.

My equity will easily cover a 15-20% deposit as well as renovation costs and fees...however I will be reliant on finance to cover the remaining cost of the property. It is in this area that I am trying to gather as much information as I can. I know bridging loans are not the best way with their high rates, but initially this may be the only solution available to me. Although with the relatively small amount I am thinking about to begin with, it could end up being the ideal solution for me, at this time, with my current set of circumstances.

I am very keen to find how other people approach the issue of property finance. Any and all advice and words of experience are more than welcome. Criticism, discouragement and just plain mockery is tolerated and excepted.

Kevin

[kaz123]

Hi Kevin... well every one has to start somewhere, and at least you will have most of the money to cover most of the project. I really am not in any position to offer advice as 2 properties doesn't give you much experience, and the way i have raised some of my finance is not the correct way to go about things!!

main tip...
keep credit rating tip top at all times even when money is tight at end of project as hard enough to raise finance even with great credit history!!

Also take advice but ultimately follow your dream with passion. If you listened to everyones advice you would soon give up, ive had many people think im mad trying to make money from property in todays economic state, however its my view that if you buy property at the right price its possible to make money in any economy, granted it is harder to sell on today so location and getting the right house becomes even more important but i imagine your well aware of all that lol!!

Anyway exciting times await you im sure

Karen