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

[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.

[Guv10]

Mortgages on the properties.

[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

[Guv10]

No, I'm not

[Guv10]

Webber3 said:

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?

12 months.

[Guv10]

Inkyfingers said:

As others have said, you haven't got a hope, unless you have some significant assets you could borrow against.

With respect, it sounds like you are trying to run before you can walk. Starting small and building up will carry far less risk and be less stressful and you'll be able to do it alongside your normal work.

I own my own property, well I have a mortgage!

I know it would be a huge task and as I said I kinda knew it would be out of reach

[Guv10]

Maybe the bank would do a business loan for the whole 1.2m ? No need for any mortgages then. Imagine the loan repayments on that. Ouch

[Guv10]

Brite spark said:

Great until the uni decide to build lots of shiny new accommodation blocks.

They've already done plenty of that! Only first years live in halls predominantly