Maxed out with 4 Investment Properties looking for creative stratergies

Hi,

I currently have 4 investment properties and I would like to continue the trend / property investing but the banks won't lend any more for serviceability reasons. They are all cash flow positive but obviously the bank go off different calculations unfortunately.

I'm looking for creative alternatives to keep things going.

It would be a shame to waste my knowledge, skills, drive & experience and just give up.

I don't know if I'm thinking too small.. but if I choose another Residential Unit purchase as an example. What are alternative / creative ways of financing it?
Crowdfunding? Team ups? Syndicates etc?

Open and interested in Commercial Property ventures (ex-commercial real estate agent).

Thanks!

 

Are you maxed out with Liberty?

 

Pay down some debt or increase your income. Only two options unless you offload a property

 

Pause, and go hard on paying down debt to improve future ability to get finance? Surely that doesn’t come under “giving up”...?

 

Sounds like something out of Wall Street in the years leading up to the GFC.

 

Hi Beyond Wealth, I don't know who they are but I'm with various banks & lenders. I don't think who I'm currently with is the problem.
Appreciate the response

 

Hi Foxdan,
I appreciate any input but I don't think that's very creative?

 

Hi Hobo, I want to borrow more not pay down debt.

 

Hi Marmot, I'll take that as a compliment although I'm not sure if you meant it that way

 

Banks don’t lend for a reason
There is a possibility they can’t get their capital back and considered it risky

This sort of stuff that made national headlines people ***** banks don’t lend but when they do and it all crashing down hmmm not my fault banks lend me too much money

 

Hi PandS, I totally agree! So because of their tightened lending criteria, that's why I'm looking for more creative options.

 

Hi Rolf, sorry I don't understand what you mean? I should create a business? Or maybe bundle them all into one business operating entity?

 

Debt has done pretty well for the super wealthy! They are in loads of debt but their net wealth is still far surpassing everyone elses.
Are you suggesting to just create any business?
Or can I maybe put all the properties into a Company structure / run them as a company and then borrow more that way?

(Plus if I can borrow money at 5% and earn 10%+ on it then I'll keep doing it. Although not really wanting to get into risk conversations, I'm happy with the risk).

 

There’s no magic formula if you can’t do one of those two. Reality is that you need to earn more money to get loans unless you can drastically reduce your spending to pay down loans which would be a slow process.
So get creative to earn more money. Build a business, get a pay rise, change jobs to a higher income.
Property is a slow game, and no offense to all the “skills, drive and experience” you have in building a property portfolio of 4 places but it’s not what’s holding you back. It’s your income and impatience.

 

But the banks arent. Which is your problem.

 

I'm not looking for a magic formula but I do believe there is a 3rd option. Pay down debt, earn more and alternative / creative financing. For example teaming up or crowdfunding etc.

Ha yep I can see how that reads but it's quite contrary. The main reason for thinking like this is I know my property investing portfolio of 4 is small in comparison to a lot of investors! That's what's making me try harder.
If anything replying to this makes me think I need a mentor / or to talk to these people. Because I agree with building a business, getting a payrise etc but I need help in that I guess. So those questions are best for other wealth building forums, whereas the question of alternative ways to finance is best for here right?

Appreciate the constructive feedback

 

Yep that's what I'm saying. I'm looking for alternative ways to finance. Does anyone have experience with crowdfunding etc?