A common mistake that many property investors make – and I have slipped up myself in the past in this respect – is something I call “hitting the financial brick wall”.
Let me explain…
Hitting the financial brick wall is exactly what it sounds like: it’s a situation that eventuates when banks and lenders will no longer extend you any finance.
It happens when an investor has too many negatively geared properties and as a result, the banks stop lending to them as they’re viewing you as a ‘high risk’ borrower. This can restrict your investment potential and ultimately limit your ability to create wealth.
How does it sneak up on you? Investors who get caught out hitting the financial brick wall usually get there because they don’t understand that cashflow is king.
I run through this concept in further detail – and offer some practical solutions – in a short video we recorded at a seminar a while back. Enjoy!
Til next time, happy investing!