Best Way to Raise Capital and Expand Portfolio

by Readers Question

13:48 PM, 17th March 2015
About 4 years ago

Best Way to Raise Capital and Expand Portfolio

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Best Way to Raise Capital and Expand Portfolio

I have a conundrum, with the property market bouncing back it has encouraged more investors to snap up property in the hope of its value rising. I have a portfolio of six fully paid up (No mortgage) 3/4 bedroom houses in Harborne and Mosely in Birmingham and these areas are the most affluent of the city. They have been decorated to a five star standard and thus command higher rents. Best Way to Raise Capital and Expand Portfolio

I’m looking to expand and would like some advice on the best way to raise capital to fund my next purchase. The economic climate changes almost every month and attractive income investment at a time of low rates and stockmarket volatility is a good time to expand my portfolio.

Should I sit tight for a year and raise some capital from rent, or mortgage, or go for a loan?

Should it be interest only or repayment?

Should I approach a specialist buy to let financier?

My father (Bless him!) always used to say to me “The key is to think long-term.”

Thanks in advance for any advice.

Steve



Comments

Mark Alexander

13:55 PM, 17th March 2015
About 4 years ago

Hi Steve

My first point is that I concur with your base logic, subject to your age. If you are already close to or above retirement age I'd have to question why you are considering long term growth strategies.

You should definitely approach a special buy to let mortgage broker, the nearest broker/member/sponsor you you that I can recommend is Simone Gilks - see >>> http://www.property118.com/member/?id=1786

With regards to strategy, please feel free to read mine >>> http://www.property118.com/how-to-become-a-respected-profitable-landlord/60765/

I am personally a massive fan of Interest Only as you will see as you work your way through the various articles that make up my strategy. There are also several discussions/debates around that subject here >>> http://goo.gl/5l9C4r - not all investors agree with me but I think it's fair to say the majority do.
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Richard Williams

15:47 PM, 17th March 2015
About 4 years ago

I agree with Mark, sounds to me that you need to sit down and strategise. Once you have a clear path the rest will fall into place. Happy to help if you want to contact me.

Joe Bloggs

9:58 AM, 18th March 2015
About 4 years ago

slightly off topic so apologies. i was speaking to a mortgage broker yesterday who said new legislation will in a few years force all professional BTL landlords to have their portfolio in a limited company. doesnt sound likely to me and a quick google doesnt illuminate. can anyone expand as this would be quite a chore and expense with stamp duty etc.

Mark Alexander

10:09 AM, 18th March 2015
About 4 years ago

Reply to the comment left by "Joe Bloggs" at "18/03/2015 - 09:58":

CGT would be the killer.

I see how in a million years this will come to pass.
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