Finance for trading

[Purple Property]

After renovating a few of our buy and holds successfully adding value to them my wife and I are looking to get into trading to supplement our income.

Do we just approach regular banks for this and set it all up as floating for when we sell 2-3 months later or are there specialist banks to go to for this?

We are in Tauranga.

[Nick G]

For your first one just get it through normal means and do the project and sell it, if your banker is onto it they'll make it a smooth process to keep your preapproval up to date. As you go you might find they keep asking for meaningless things - such as a RV of all your holds every year - and it may pay to move the equity to another bank.

Get your structures right and be aware of the associated party rule.

[Bobsyouruncle]

Banks often dislike traders so if you have enough equity to use RC for the buy then do that absolutely. Also where you can do contemporaneous settlements then you only have your initial 5% deposit on the table at any time.