How to Raise the Property Deposit

So we are in a Credit Crunch, and for the first time in years, real estate prices have come down to realistic levels. You can now actually buy a worthwhile investment, rent it out and show a profit after the mortgage payment, maintenance, insurance, expenses! This hasn't been the case for years!

Maybe you're a first time buyer and you think this is finally your chance. As a first time homebuyer, this all seems a bit bewildering to you, but just take one step at a time to get your real estate mortgage.

So how to raise the deposit? Well you can steal it or save it. The former is just plain wrong and the latter is going to take FOREVER.

Quite honestly; the most effective way you can do this is to BORROW!

OK, I can hear the moans; before you read any further, I ant to explain that I am NOT promoting rampant and excessive borrowing, of the type that got us into the credit crunch in the first place. What I am saying is that prudent borrowing to purchase a cashflow positive rental property, which you have thoroughly researched, is most likely a case of "good debt". As opposed to "bad debt", which is used to buy consumables, with no lasting value.

Now we are in a credit crunch so your options are not great, but finance is improving and available for the determined. Sources of deposits can be:

1. From your own home. If you have positive equity you could borrow out the deposit to fund your cashflow positive property. This is called mortgage refinance or refinancing for short. Professional property investors do it in the right circumstance and at the right time.

2. From your existing property portfolio. If you have an existing, positive cashflow property portfolio, you could easily refinance some of the equity for a deposit. Effectively, what you are doing is buying real estate no money down (NMD)!

3. Get unsecured loans, short term loans, credit cards and overdrafts. Try to find competitive deals and 0% credit cards with long loan periods. Have a look at Checkmyfile.com, which will match you with the lenders most likely to consider you application. They will also give you a free credit score, so it's worthwhile checking your credit history at the same time.

4. Selling some of that expensive jewellery you never wear or car you never use.

5. Sell unwanted household items, or collect things from your local Free Ads, and resell for a quick turn. I've done this and it is quick cash for your deposits! Gumtree.com is good

6. Saving hard from your salary - good luck with that one.

7. Join a reputable Affiliate Scheme to make some extra cash, to fund your deposits. There are some good ones around.

8. Borrowing off of family members; this can work well if the conditions are made very clear up front.

9. Doing joint ventures with business people who have some money. Make sure the are trustworthy and have complementary skills. Remember, 50% of a very successful business is better than 100% of nothing!

Now if you need help with raising the deposits money then speak my very reputable mortgage brokers at the Ahuja Group. They can help with vertially any situation.

If there is a way of raising a deposit from your current assets they will be able to work out a way to do so. They also have access to specialist unsecured lenders. Ask them about No Money Down Finance.

How to Get the Property Mortgage

They will also help you get the mortgage itself, and they have access to the full buy to let mortgage market AND the commercial market also.

The commercial market is where the lender (one of the high st banks) assesses you individually and makes a responsible decision. No automatic credit scoring and a “computer says no” mentality. They will prepare a case in detail of why one of these lenders should lend to you.

Prices are extremely cheap at the moment and will rise at some point. Right now cashflows are great and so that is a strong buying signal.

Don't miss the chance; don't not look back at 2009 and think “how did I not see how cheap prices were back then?”

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