Is this possible?

[Guv10]

Hi,

I've just seen a property business for sale. 1.2 million. Consists of 4 rental properties. Return of 9000 a month.

If I was to go to the bank and ask for a business loan to be used as a deposit for the houses what are the chances of them giving it to me?

I'm expecting to get plenty of sarcastic answers.

basically I've gone through it in my head and I'm 99% sure that they would say no. I just wanted others opinions

Cheers

[sugerbear]

How much are you contributing or guranteeing of you own funds?

[sidicks]

Guv10 said:

Hi,

I've just seen a property business for sale. 1.2 million. Consists of 4 rental properties. Return of 9000 a month.

If I was to go to the bank and ask for a business loan to be used as a deposit for the houses what are the chances of them giving it to me?

I'm expecting to get plenty of sarcastic answers.

basically I've gone through it in my head and I'm 99% sure that they would say no. I just wanted others opinions

Cheers

Given that you've given us no information about yourself and minimal information about the property, what sort of answers are you expecting?

[Sarnie]

£9000 sounds high?

[otherman]

Guv10 said:

Hi,

I've just seen a property business for sale. 1.2 million. Consists of 4 rental properties. Return of 9000 a month.

If I was to go to the bank and ask for a business loan to be used as a deposit for the houses what are the chances of them giving it to me?

how much of a deposit? How secure is the rental income?

[Guv10]

Rental income is high due to it being student rents. The demand is very high.

I have nothing to put in and was just wondering if the bank would even entertain giving a business loan for a purpose of a deposit, which I guess would be 25%, so 300k

Pie in the sky I know, like I said I 99% sure they wouldn't but wanted to make sure.

[hajaba123]

Guv10 said:

Rental income is high due to it being student rents. The demand is very high.

I have nothing to put in and was just wondering if the bank would even entertain giving a business loan for a purpose of a deposit, which I guess would be 25%, so 300k

Pie in the sky I know, like I said I 99% sure they wouldn't but wanted to make sure.

Let's presume someone would give you £300k, where's the other £900k coming from?!?

[Guv10]

Mortgages on the properties.

[DuraAce]

Mortgage I presume? Using the 300k as the deposit.

[hajaba123]

Not in a million years will you get 100% finance for any sort of property company. Well, maybe in 2005...

Yield on that does seem a bit out, if it seems too good to be true and all that

[sidicks]

Guv10 said:

Mortgages on the properties.

[craigjm]

A loan for a deposit and then mortgage the properties? Based on your annual income of?

There is a reason Northern Rock went bust

[dave123456]

there may well be a few takers if this were a goer.

not saying they'd have much sense between them as if it really was this easy to make money, something in there, rental yields, capital growth (decline) or interest rates would move pretty sharpish to create some hard work somewhere in the business model.

[Guv10]

craigjm said:

A loan for a deposit and then mortgage the properties? Based on your annual income of?

There is a reason Northern Rock went bust

My income is 35k

[Guv10]

hajaba123 said:

Not in a million years will you get 100% finance for any sort of property company. Well, maybe in 2005...

Yield on that does seem a bit out, if it seems too good to be true and all that

Exactly what I thought. Too good to be true. The yield is very high but it's correct and demand is very much there

[sidicks]

Guv10 said:

My income is 35k

Are you on some sort of wind up?

[Guv10]

No, I'm not

[sidicks]

Guv10 said:

No, I'm not

So you expect to put nothing in and get 100% of the upside and the bank to fund the purchase entirely with no upside whatsoever (and all of the downside)...??

And you don't see the issue with this?

[craigjm]

sidicks said:

Are you on some sort of wind up?

OK so on your income you would be lucky to loan 140k on a mortgage even with a deposit and you are talking nearly 10 times that?

[Webber3]

Guv10 said:

Exactly what I thought. Too good to be true. The yield is very high but it's correct and demand is very much there

The yield is about right. This isn't a simple buy to let. There's work involved managing 4 properties and possibly 20 rooms.

By the way is that £9k per month based on 9 months or 12?