Equity but no cash. What to do?

[eggnog]

also interested to know what kind of business Yman

 

[The Y-man]

What sort of business did you start The Y-man?

My current business is share trading.

We previously tried student accomodation at our IP's - too much effort for too little gain.


Cheers,

The Y-man

 

[eMark]

Come on.
Business is fun and challenging.
I started a business just 2 years ago and have just bought 1st IP, settles tomorrow!
Now can pretty much buy outright a 350K property every year from current profits.

I'm glad I spent a couple of years to increase my income rather than be on my previous crappy 35-40K income only to save and invest very slowly.


Good Luck

Spider.

If you don't mind me asking, what type of business did you start?

 

[Twitch]

Ok.. understand this in 'theory'...question I'm still trying to get my head around is funding debt with debt. Maybe I need a mind shift...can anyone help me with this?

Thanks

So long as the gross asset values are growing much more than the debt then it's managable. Typcially houses grow 7-10% per year, and the initial NG shortfall might be 2% after tax. So if the asset is growing 7-10% and the debt is only increasing at 2%, your equity is increasing.

 

[BlackSpider]

Our business is importing to sell online.

 

[Mumprenuer]

Thanks BlackSpider...understand what you are saying

Thanks Twich...makes sense...I guess one has to be 'comfortable' with that 'risk'. mmmm food for thought. Thanks

 

[eggnog]

hi blackspider. Would you mind if I ask what your import website is. Or you could PM me if you don't want to disclose this on open forum