Your Lazy Equity Could be Making you a Fortune !
The more I come into contact with investors and find out what are their property dreams and financial dreams I notice there is quite often some common denominator - the amount of lazy equity which they have access to which could be earning them a fortune !
It got me thinking and it actually makes sense. How often do most people meet with a financial advisor with a view to discussing how to deploy their assets to create maximum passive income. Well, most people don't. They tend to have these discussions with a financial advisor when they need a mortgage for a new house, etc. Even then the conversation is very limited.
I am a big stickler for working one's money to maximin passive income. I have always been like that. I am that person who makes sure every child's ISA account, adult ISA account, high income bonds and funds is being invested in.
But above all, property is king. Especially what I am doing now. Purchasing below market value properties in the outskirts of Manchester for my own portfolio, and for investors. The yields are good (7% upwards), the growth is good (just read any property broadcast of what is currently happening in the Manchester property market), and the demand is there by tenants.
So, people are sitting on funds (lazy equity in their properties) which could be earning them a fortune. Here is a good example of what I mean.
One of our investors has a house fully paid off worth £ 224k, and wants to get into property but has no idea where to start. We are helping him to remortgage his house to release £ 165k. This will cost him around £ 220 monthly on a 1.58% mortgage for the first 2 years. With that money we will be investing with us in our developments in the outskirts of Manchester. With £ 165k we will purchase 7 properties in Manchester for the investor earning around £ 3k a month net. The 7 properties would be purchased Below Market Value, so the equity in all the properties would be around £ 200k.
That equity ( which was just lying in the property doing nothing), will be earning them £ 2.78k (£3k minus £ 220 for the remortgage) a month net and give them equity of £ 200k. WOW ! After several months, there is the opportunity to remortgage and release even more funds.
So, please make sure your lazy equity is active equity. If you would like to discuss with us how to do this, please contact me. We have a in house financial broker, who is between you and me, brilliant. He has found ways of releasing equity from properties which are just incredible.
Once we have helped you raise funds, we will also help you invest it and earn good passive income, and maybe in some cases financial freedom.
'You only know what you know'