How does one start a property investment business with no capital.?

Question

I once attended a seminor where we were advised that one could use credit cards, loans and other means to get a mortgage and start up on the property development ladder, how does this really work? Unfortunately i am very sceptical about spending €1000 for a 3day course on it. Please comment or share ideas.

Answer 1

One method is to find a fixer-upper that you can buy and renovate using a construction loan. Find a lender that will lend a percentage of the future value based on plans and specs to renovate the property. When the house is complete, simply roll the construction loan into permanent financing if you want to keep the house or put it up for sale to gain a profit which you can then use to buy other property.

Answer 2

You need to build up your credit score first of all, take credit cards and loans and pay them off to increase your score.

When you've got a good score you can try for a mortgage, the better your score the lower deposit you'll need for the mortgage, and hopefully you can pay the deposit with a credit card.

Use other credit cards and loans to fix the place up.

Of course you need to do all this very quickly as you need to make repayments on all the loans and mortgage. You want a maximum of 2-3 months from start to finish so you dont have to long making repayments.

When you sell the property, pay off the mortgage and loans and repeat the process putting your profits against the next property.

Answer 3

I am in the same position. I have limited cash on hand. I am pursuing purchasing a property undermarket value, fixing it up to bring to market value and taking the equity to purchase additional properties. I feel you need to have alot of cash to realistically be able to do this. You need money for closing, renovations and mortgage payments. If you don't have this cash available you will need to have access to an equity line, personal loan etc.