I’ve had a great question from someone inquiring about my mentorship programme (but bear with me, it’s a property question) along the lines of:
“Hi Peter, I don’t think I’m mortgageable so is it even worth having a mentor?”
OK, there’s a lot in this question but first things first.
Just because you think or assume you are unmortgageable doesn’t mean you are right. There are many lenders, with many products, and many differing lending criteria. The best way to check if you are mortgageable or not is to talk to a good mortgage broker.
I’ll happily refer you to mine if you email me thepropertyteacher@gmail.com
Now, into the meat of the question.
We could look at it that he’s asking, “Peter, can I be a property investor even if I have no money?” because that is the practical effect of being unmortgageable (unless he has significant savings which he hasn’t told us about).
Well, first of all, how are we defining ‘investor’?
If he meant “owner”, that could be tricky.
But could he be someone who controls property without owning it, but can receive the benefits of ownership anyway?
Yes, there are ways of doing that.
There are a number of cheap, low money, not much money required, No Money Down, entry point strategies which he could use, even if he has no money, or limited funds.
Strategies like Rent to Rent which is great for cash flow and doesn’t require ownership. It’s basically a legal form of subletting (when it’s done properly).
Or using Options, or Delayed Completions or Assisted Sales
Or deal sourcing where you can find and agree deals but pass them on to another buyer for a fee.
In this instance, our inquirer is assuming they are unmortgageable. But what if they aren’t?
Well, that could allow them to do a host of other strategies as well like ….
Using JV (private) finance to buy a property (in their own name, i.e have ownership) and then refinance (mortgage) at a later date and pay back their JV partner (lender).
So the simple answer is, there are things you can do even if you are unmortgageable, or have no or limited amounts of money.
Anyway, my answer is in the video. I hope you enjoy it.
Here’s to Successful Property Investing.
Peter
Peter Jones
(ex) Chartered Surveyor, author and property investor
https://thepropertyteacher.co.uk
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to:
https://thepropertyteacher.co.uk/the-successful-property-investors-strategy-workshop
