Is £25K enough to get started in the property industry? Local 2-bed terraced houses are around £200K.
I have around £200K equity in my property and I have recently taken out a new mortgage on the family home.
I am a builder so I can improve properties easily.
The big plus is your background, you will be able to take on dilapidated, problem properties that other people wouldn't touch and fix them up cost-effectively.
Is £25K enough? If you work on the basis of needing a 25% deposit on a £200k property, then no it isn't. Add in stamp duty, legal and valuation fees and you are some way short of being able to get started.
This means you are going to have to think and act smarter to get going but, with the massive advantage of your trade background, it is worth learning how to do that.
It starts with picking the right type of property that you can buy at a discounted price. Why discounted? Because the problems associated with it (that being a builder you know how to fix) render the property unmortgageable in its current state.
The king of these would be properties with structural defects - only someone with your background would know, working with a structural engineer, how to rectify the problems. Such properties are usually available at a knockdown price and there are more of them than you might think.
Another great buy for you would be half-finished projects, where someone who watched a few TV programmes jumped into a job that they discovered was way beyond what they could cope with. You can buy well below market value with these too.
The £200K equity in your property could be the vital component that gets you started. How? By using Cross Collateral bridging finance. Being able to leverage that equity, in addition to your £25k, could fund your 1st deal. Add in that it is possible to borrow 100% of the works costs using a Refurb Bridge product to fix up a property and the seemingly impossible starts to look possible.
With 20+ years property finance brokering experience I have the knowledge to make bridging work effectively – and I teach this to others on my Ninja Investor Programme.
You can also learn more here