Last Monday I spoke at the Berkshire Property Meet for the first of two appearances, I was honoured to share the stage with the Dr Rohan Weerasinghe and of course the great hosts Juswant and Sylvia Rai. I talked about my experiences as a new property investor over the last eighteen months. How I had set my goals, educated myself, been determined and adaptable over that time. I listened to lots of experienced investors including Rohan, Rob Moore, Phil Martin, Simon Zutshi, Mark Dalton, Sean Thomson and many others.
In January of last year I asked Vanish Patel a question from the audience and received invaluable feedback and information, armed with that I approached a number of banks and secured myself a personal commercial arrangement. This enabled me to buy property essentially for no money down – well that’s not exactly true …. I bought them for cash and then quickly remortgaged them to full market value enabling the release of the equity. The bank knew this and was happy, a legal NMD system.
On Monday evening, I spend two hours answering questions from people in the audience at the BPM, about how I did that. They were focused on the detail and with due respect I feel missed the wider point. I asked questions, I ACTED on the information I received. One lady contacted me through Facebook and below is the subsequent conversation (with Sukhy’s permission) that I hope may help others……
I saw you present at the BPM on Monday and wanted to say you did a fantastic job!!!
It was really lovely to see a lady up there for a change – I’m not new to property but new to BMV and Lease Options – I am presently trying to do a JV and hope its the start of BIG things for 2010. Anyway, I was intrigued at how you managed to get banks to lend you loads of money – are you able to share?
Sure I just presented myself to the bank as a business wanting to open an account - I sort of interviewed them. Please note that they are thinking differently now than 11 month ago and even then I did not get a ‘facility’ (which I think is what you are after).
Disadvantages of this approach - the loans are commercial and so on a capital and repayment basis so although the rate was low it felt like about 6-7%
Advantage – was that bank was not interested in ’6 month rule’ and they had no redemption or tie in period, so I could remortgage after 6 months after purchase and pull out my equity and recycle my money and thats my plan.
Come and say hi the next time – would be good to meet you in the flesh thanks for kinds words and getting in touch
Thanks for your email and thanks for the information. I think I may set-up a meeting with my bank manager and see how it goes. I’ve got nothing to lose I guess! Did you go with some BMV deals in hand or did you just sell them the concept? and did you open the account before going to see them? or as a result? Also, did they specify how much cashflow or anything +ve was good?
Sorry, soo many questions. I will definitely come and say hi next time – I will be at BPM next month so hopefully see you then