So you’ve got your first property under your belt and you’re ready to start building your portfolio...
But there’s a problem...
...You need to figure out how to finance that second purchase.
This is where a lot of investors fall down...
They get to the one or two property stage and end up struggling to keep moving forward.
You need strategies in place that will allow you to maximise your portfolio and create your dream future.
These are a couple of techniques that will help you do it:
#1 Use Positive Cashflow to Boost Serviceability
The lending environment hasn’t been the most favourable to investors in recent years.
The royal commission has tightened lending criteria across the board, and increased lender scrutiny.
Showcasing excellent serviceability is the best way to circumvent all of that.
At the end of the day, lenders look at all investment loans as a risk. Their goal is to mitigate that risk as much as possible.
After all, they lose money if you default.
By establishing positive cashflow in your first property, you’re creating an income.
And that counts towards your serviceability.
The lender sees that you have more money coming in. And that means they’re more likely to accept your loan application.
#2 Tap into Your Equity
So the cashflow situation’s looking good.
However, you still need to raise money for the deposit.
That’s where your first property comes into play. By utilising strategies such as buying under market value, in high growth areas, or potentially adding value in other ways, you’ve built equity that you can access to pay a deposit for the next property.
You may even be able to offer a higher deposit than required. This immediately pulls the loan principle down for the new property.
This further lowers the risk, and increases your cashflow position.
Combine these two strategies and you have a much better chance of getting finance for your second investment property.
Dashdot can help.
We specialise in helping people like you find high yield, high growth properties with multiple value add strategies.
These are High Performance Properties.
With these three key mechanisms, you can build the future you want, safely, and quickly.
Do you want to find out if we can work together?
Take our 15-second application to find out if we’re a good fit, and then let’s start taking action, together.