From: Michael Yardney
The banks like to see you have a steady stream of income coming in to help service your loans and they recognise that being a property developer is a risky business. The income form developing is "lumpy", it comes in every 6 to 12 months when you complete a project.
Further many (??most)newbie property developers never make it to the big time...it's not as easy as it seems.
So how do you get started?
Well.... I was developing part time for almost 10 years before I went out full time 6 years ago. I had 20 or so projects under my belt before I felt I knew enough and I was ready to quit my day job (In retrospect I should have done it much sooner!!)
I used the cash flow from my real job to help build up my investment property portfolio.
Now the banks are happy to lend us money as they see we have multiple sources of income(something I would recommend you all aspire to).
I'm not saying all this to impress anyone...I don't need to, but to explain what the banks look for and to offer some advice to new developers
We have strong streams of passive income from investment properties. Good cash flow from project management for clients (helping them become developers and buy their properties wholesale) and handsome profits from property developing.
You will be a much lower risk to the lenders if you develop multiple income streams.
Michael Yardney
Metropole Properties
The banks like to see you have a steady stream of income coming in to help service your loans and they recognise that being a property developer is a risky business. The income form developing is "lumpy", it comes in every 6 to 12 months when you complete a project.
Further many (??most)newbie property developers never make it to the big time...it's not as easy as it seems.
So how do you get started?
Well.... I was developing part time for almost 10 years before I went out full time 6 years ago. I had 20 or so projects under my belt before I felt I knew enough and I was ready to quit my day job (In retrospect I should have done it much sooner!!)
I used the cash flow from my real job to help build up my investment property portfolio.
Now the banks are happy to lend us money as they see we have multiple sources of income(something I would recommend you all aspire to).
I'm not saying all this to impress anyone...I don't need to, but to explain what the banks look for and to offer some advice to new developers
We have strong streams of passive income from investment properties. Good cash flow from project management for clients (helping them become developers and buy their properties wholesale) and handsome profits from property developing.
You will be a much lower risk to the lenders if you develop multiple income streams.
Michael Yardney
Metropole Properties
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