How Can I Get Ahead With My Finances?
A lot of people ask this question.
They may be stuck and don’t know how to buy more properties, or they have the wrong asset or loan.
But there is always a solution.
First, take an overall look at your position. Your portfolio may be under performing, but how can you use what you’ve got to get to a better place?
One way is through portable loans and being able to do security swaps, which many people don’t know about.
In 2020 I’ve been able to help more than a dozen people replace their security (like a bad property) with a better outcome.
Some may have had one big property with a million dollar debt attached and I helped them replace that with five new properties, pocket another half a million dollars and then buy a block of units with positive cash flow.
Use your debt
You might sell a property today for a million dollars and you owe $500,000 on it.
Technically what you could do (and this is not financial advice) is park that loan to the side and replace it with three or four other properties attached to that loan, as well as keeping cash in your pocket.
I’m seeing someone at the moment who has replaced one unit with three more properties and has a million dollars cash.
With that money he could go out and buy a principle place of residence outright unencumbered, or he could buy a whole unit block in cash.
Imagine buying a block of units for a million dollars and having a 10% return on that; $100,000 in passive income per year, as well as the three other properties attached.
A little understanding
It is crucial that you understand the debt, your finance and its structure, the loan product and all the elements of the position if you are to expand and move forward. Quite often there’s an opportunity to just tweak something that frees you up to push forward and not be sitting there in five years regretting having missed a new market cycle.
If you need help or have any questions, book a free Discovery Session with my team and we’ll see what we can do to help you on your property investment journey.
One of my finance strategists can help you build a debt strategy in order to accumulate that debt and then reduce and pay it off.