Hi Really keen on helpful tips from investors who have grown their portfolios past a certain level. I have acquired ten properties over the past 5 years, I am around 70% leveraged and all my properties have reasonable cashflow. I have had no probs getting finance in the past and have good relationships with the three banks that I am spread my lending over. My problems have come with property number eleven! I have recently put three deals to the banks through my broker. All have seemed like great deals to me - in reasonable sized New Zealand towns or cities and with yields over 10%. But every time I have been turned down for finance at the last minute, because
*I am over the "ten property" threshhold which apparently makes me a "business customer" as oppsosed to an "Investor" and puts me in a different category of the banks lending portfolio with different rules (which no-one will actually explain to me!)
*They say I am "too reliant or "exposed" to rental income" (well excuse me, but isnt that what property investment is built on? Rental income?)
Have others had this hurdle and how did you get over it? Thanks!
*I am over the "ten property" threshhold which apparently makes me a "business customer" as oppsosed to an "Investor" and puts me in a different category of the banks lending portfolio with different rules (which no-one will actually explain to me!)
*They say I am "too reliant or "exposed" to rental income" (well excuse me, but isnt that what property investment is built on? Rental income?)
Have others had this hurdle and how did you get over it? Thanks!
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