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7 Ways To Raise A Deposit To Invest In Property | Real Estate Investing Finance

Hello, in this video, I’ll cover 7 ways
that you can raise a deposit to invest in property. Hi, I’m Andy Walker from,
where I blog online about my journey as a property investor and landlord, sharing what
works for me and what doesn’t, to help you start or expand your property portfolio. Obtaining a deposit to buy an investment property
can be the first stumbling block we encounter when we want to invest, so I would like to
mention the different ways I am aware of for raising finance. You may already know about
most of them, but hopefully I will introduce you to a couple of areas that you may not
have considered or even heard of. Now, I am not providing financial advice here,
I am simply highlighting areas that you can consider to obtain funds to invest. Let’s
do it. Personal Savings and Investments If you have savings or matured investments,
the chances are you can increase your return on investment by transferring those funds
in to property. If your not convinced, take the time to do some research and do the maths
to see what you could achieve. There is no harm in looking. Next If you are at the right age, you might be
able to withdraw a lump sum from your pension to get started, and some withdrawals can be
tax free. I recommend contacting a financial advisor for advice if you are unsure as to
what you can do. Equity – Did you like that? It was to simulate
the recent rise in house prices. If you already own property, whether this
is your own home, holiday home or another investment, then you may have equity in there
that you can extract. This is how I got started, although I sold
my home to move into subsidised accommodation through my work, and then looked at buying
investments. I later found out that I could have just remortgaged
that property to release the equity and could have kept that one a swell (tut!) You live
and learn. Inheritance Often the result of a very sad situation,
but by investing your inheritance you will add to your legacy. Now the following methods are referred to
as using other peoples money, or OPM This is using a personal loan or credit card.
People take out loans and use their credit cards everyday to buy expensive cars and other
luxury items. Why not use those funds as a deposit to buy property … Hmm! Waaoh! Bridging Finance can be completed within 2
weeks or less. This is a short term loan usually up to 12 months, but it can be more. The loan
is secured as a second charge to an existing asset like your home, or a first charge if
you have an unencumbered property. There generally more expensive than a mortgage but they’re
good for speed and short term finance if you don’t want to increase your mortgage and
tie yourself in for a longer term on your existing property. You will need a plan to pay back your bridging
finance, and the most common method is to mortgage your additional purchase to then
pay back the loan. So you take out your bridging finance, you purchase your property, you add
value to it, you then mortgage at the higher valuation, and clear your bridging finance. Got it? (clap clap) Gift Now a gift from family and friends, would
be very nice, but you could also return it to them at an agreed time and maybe with interest. And as a thank you for watching this to the
end, here’s a bonus one Crowd Funding Thanks to the internet this is becoming very
popular. It’s a means of receiving smaller amounts of money from a lot people as opposed
to large sums of money from just a few people. Traditionally, if you wanted to raise capital
for a project, you would have needed to of shopped around for wealthy individuals or institutions,
including angel investors, banks and venture capital firms. There are now hundreds of online crowdfunding
platforms where you can showcase your potential project and have potential investors come
to you. There’s are a few that have recently started that have been specifically designed
for property investors. Crowdfunding is a big topic, and I don’t
have first hand experience with it, not yet, but it is worth researching further if you
want to find out more. I hope this video has been useful and that
it’s opened your mind to ideas as to how you can start or grow your business. Please leave a comment below if you have any
questions or if you would like to share your experience on raising a deposit, I’d like
to hear about it. And please subscribe by clicking that big red button if you haven’t
already done so, so that you don’t miss out on any future videos and I would really
appreciate your support. Thanks again for watching, keep up the good
work, and I’ll see you in the next one. (beep) But it is worth researching more, if you want
to find out furtherrrrr (beep) Where you can showcase your potential p……erm (beep) Traditionallallyy lalalallallal (beep) And venture capital firms (phone ringing in
background) Ah, for 5 minutes! Huff!

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14 thoughts on “7 Ways To Raise A Deposit To Invest In Property | Real Estate Investing Finance

  1. Love the style of your video as well as the content. I've never heard of bridging finance. Sounds like a hard money loan?

  2. Hi mate. Our home is in my partners name, if we were to get another property in my name on a 5 to 10% deposit, what would the rules be regarding renting the 2nd one out. Basically is there a way around paying the higher deposit for btl. Thanks

  3. Love the video. Just looking how to get started. I have o£100k equity in property but not much extra in cash by the end of month. How do I get started?

  4. There are many lenders that will stray off the personal loan as a deposit route. I'm a first time buyer, and I am about to raise a deposit through a personal loan. How do you get lenders to accept this? Will Natwest be okay with this.

  5. If you had £60k saved with a home being offered to you by your parents at £140k (market value approx £300k) how would you spend the £60k for maximum profit. Divide it into 2 properties?

  6. Thanks for the insight. The bridging loan is fascinating – seems like a process that could be repeated over and over again, especially to build up cash for a deposit on a property to keep to increase cash flow . Does your credit score factor into someones ability to get a bridging loan?

  7. Sooo point 1. If youve got money
    2. If you've got money
    3. If you've got money tide up in your house
    4. If you're being given money

    7.if you're given money


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