Business loan for property investment

Board Topic: starter business loan for property investment
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starter business loan for property investment

Posted by: Steve Dec 1 2004, 06:17 AM
An opportunity has arisen in my area to purchase a property portfolio consisting of 1) A fist floor flat with 3 bedrooms, 2) An already rented out 2 bed terraced house, 3) Two retail units (one of which is alreay rented out).

I am very interested in this opportunity but don't know where to start, the asking price is 240,000.

I own my own home but the value of my property is only half of the investment opportunity price.

Is there any point of me considering putting a business plan together or is their a financial organisation that will fund my idea.

If you think their may be someone who would at least listen to what I have planned for the portfolio I would be very interested to hear.

Kind regards

Posted by: loanuniverse Dec 1 2004, 11:46 PM
Steve:

On this side of the pond, that would not be considered a business loan, and no business plan would be needed. This is an income producing loan, and would be underwritten based on the repayment source being rental income. Most bank lenders and non-bank lenders do this financing all the time.

It is all about the leftover cash flow after the operating expenses associated with the property are deducted.

Cheers.

Posted by: Commercial Lender Dec 3 2004, 03:47 PM
As admin said, its about the cashflow. Dont kno wthe programs/lenders in the UK but I think it would be safe to say that operating statements would suffice. It cant imagine a business plan being more that 15 pages for this esp if you have the leases in place.
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