How To Finance A Property Portfolio In 2020
Investors sometimes think they have missed the boat when it comes to building large portfolios.
Common complaints include that finance is harder to get than it used to be, the market is very different today and properties are more expensive, just to name a few.
But the reality is, these types of struggles were in place for investors in the past too. Finance, for example, has always been a major hurdle for those looking to build a big portfolio.
Get an understanding
It’s important to spend a lot of time understanding finance because you can get as many properties as you like that are below market value; you can find as many as you like that have a positive cashflow; but if you can’t finance them, you can’t build the portfolio.
Make sure you’ve got a debt strategy in place. If your bank or broker can’t give you a debt strategy, be very careful and ask yourself if you have the right professionals on your team.
The biggest way people get hurt when building their portfolio isn’t just from buying the wrong assets, but from structuring their finances poorly.
Having a debt strategy allows you to consider what the future is going to look like for that portfolio.
Ask yourself, what is the debt vehicle I’m hopping into in order to build my property portfolio?
How am I going to remove the debt over the course of the next 10, 15 or 20 years?
How is this portfolio going to expand and do I need a different finance strategy later down the track?
Making sure you’ve got the right debt instruments attached to your portfolio is crucial in order for you to be able to expand rapidly and build a double digit property portfolio.
It can be done!
Throughout 2020, we’ve helped more than a dozen people hit double digit property portfolios, so yes it is possible.
Is it harder than before?
No. There are different issues these days when building large portfolios, but there are ways of structuring the debt in order to make the banks want to lend you more money.
This area is complex for the untrained investor, so it’s crucial to get the right team behind you.
Zinger Finance is a team that specialises in building out property portfolios for people.
They help people buying their first property; mums and dads that just have their house to live in; and large portfolios for sophisticated investors.
Everyone’s position is different.
If you need help with finding the right strategy, make sure you speak to the Zinger Finance team first.
If you’re looking to get one property or 10 properties, reach out to Zinger.
If you have no strategy, or one that you are not sure is right, get in touch. The Zinger team knows all about reaching an ideal debt position, using different strategies.