One homeowner that I once met decided that they wanted to start a real estate company, and to do so a homeowners’ loan of significant size would have been necessary. Now, the customer had already owned a decent number of homes to begin with. Since he wanted to start his own real estate company, he would have to do a few things. 

First is to make sure that he had the correct acceptance price on all real estate he wanted to purchase. Now, with real estate and buying a home, a listed price is different from an accepted price. Sometimes you would have to pay an extra 5%, and sometimes you could save an extra 5% too. This key difference despite the actual amount in cost, makes a massive difference when it comes to the loan itself. 

Once we had a general idea for the cost to purchase all homes that was wanted by the customer, we then had to calculate the cost against the amount received if the customer re-mortgaged their currently owned homes. Now, unfortunately for the customer, the amount that he could get from his currently owned homes was only 80% for the total cost of the loans themselves, so we had to then look for additional financing options. 

Unfortunately for them, the financing options came in form of mortgages for the additional amounts. Now, a mortgage is not a terrible thing within itself, but when you are spread through multiple properties, the difficult part is the maintenance of those properties’ loans. Ensuring that a single payment is not missed on any is more of a hassle than anything else. You never want to be late on a loan repayment. 

It did work for them though. It did not take long for the customer to find tenants for his new properties which paid for the mortgages themselves and bought a dressing table mirror with lights to go with the whole refurbishment.