When you start your journey as a property investor, arranging finance is often a fairly straightforward process.
But once you begin building your portfolio and buying your second, third, fourth or fifth property, that’s when problems can emerge.
One of the most common issues that can occur at this stage is what I call “hitting the financial brick wall”.
In a nutshell, it means the banks are not willing to lend you any more money.
Now, this happened to Ed and I when we reached property number 6. We had plenty of income to service new mortgages, but lenders were telling us that with six investment loans, we were maxed out.
The first thing you need to know is that all lenders will evaluate you in terms of your potential risk.
In reviewing your application they want to know, what is the level of risk involved that you will not pay back your loan?
Many different factors can impact a lender’s risk appetite and to complicate things further, each one uses different policies and evaluation criteria.
But if you find that you’re hitting the brick wall and you’re keen to keep adding to your portfolio, it might be one of the following four things holding you back:
Your credit profile. A clean record of repaying your debts will boost your financial CV, while a spotty credit history isn’t going to do you any favours. Get a copy of your credit profile, so you can see if any blemishes may be halting your progress.
Employment and accommodation history. A long and loyal employment record and a long time living at one address can help your application, as it demonstrates stability and represents reliability and ties to the community.
Personal debts. Many lenders become nervous about extending further finance if you have high levels of personal debt, even if your payment history is strong. Eliminating credit card debts and personal loans is a good start.
Too negatively geared. If you only own negatively geared properties, lenders may be keen to see some positive cash flow income to balance out your portfolio.
If you would love to have a ‘clear direction’ in growing your property portfolio…so you feel confident and in control…
If you’d love a clear written plan to reach your specific financial goals over the next 5-10 years…
And, if you want to ‘speed things up’ so you can reach your financial goals much quicker….
Then your next best step is to book a Property Action Call, with one of my personally trained coaches…
In your property action call you will…
Discover how you could ‘tailor’ my ‘10 properties in 10 years™’ investing system…to yourpersonal situation
Get a clear ‘snapshot’ of where you are now financially…so you feel clarity and confidence moving forward in leaps and bounds
Discover property investing mistakes that you may be making…that are hidden from your view.
And much more.
I value this call at $295. But it’s yours free because I want to ‘jump-start’ your investing.
The only catch is there are currently only a handful of spots available in the coming week…and they will go quick.
Click here to claim your complimentary Property Action Call now….