Find Cash To Build Your Portfolio

Here's the dilemma. You want to build a good portfolio that's delivering cashflow in the medium term. But you have limited capital (most investors are in this situation).

Of course, limited capital can mean many things... from £10K to £1m or more but whatever you've got, unless you use the right strategy you will reach a point where you have used up your cash.

We talk to many investors who only get one shot at building their portfolio. Maybe they only have the equity from their house to invest. Maybe they were left money in a will. Maybe they've saved for 20 years and got together a nestegg.

It's surprisingly few investors who continue to add much more money to their capital - for most people once it's gone, it's gone!

This presents investors with a dilemma. If you are not in a position to invest beyond your currently available capital, how do you keep building a portfolio? What happens when your £10K, £100K or £1,000K is gone?

We think it's important that investors are in a position to develop their portfolio to the maximum possible. Here's a couple of ideas:

Buy Property Investments Using No Money Down finance

We don't believe that NMD deals are a universal panacea. However, for the right deal and the right investor they really can make an enormous difference to your portfolio. And with 100% Financing now available from Axis for selected investment opportunities, the opportunity to complete NMD deals has taken a big step forward.

What difference can NMD deals make?

Well... let's take my personal portfolio as a guide. About half my property was purchased using low or no money down techniques, which means it's about double the size it would have been otherwise.

Some investors I know have portfolio's three or four times the size that they would have been without buying using NMD finance.

Want to know more:

Download our No Money Down Smart Guide

Download our No Money Down Finance Guide

You can apply for a Portfolio facility in advance of finding property so you are set up ready to go!

Find A Way To Generate Cash

Whether you are employed or run your own business, you are in a lucky position if you are able to build surplus capital out of your after-tax income. A few high earners or profitable business owners are able to do that, but most people simply pay their way and maybe have a little left over.

So this is a dilemma. How can you continue to build capital to inject into your portfolio?

Here's one solution... flip property quickly for a profit.

It's a traditional technique for making profits and something that my family have been involved in for years. I've got one brother who is an Architect and has spent 25 years building, refurbishing and selling property in London.

I've got a second brother who lives outside Dallas in Texas and has been building and selling houses for 20 years.

Both of them are in the flipping business.

The challenge, of course, is that they are both full-time and it's something that investors with other work commitments and no construction knowledge will find almost impossible to emulate. That's why we are so pleased with our 'cash machine' in Memphis.

How Does A Memphis Investment Build Your Portfolio?

Here's what happens in Memphis:

• We buy foreclosure property (repossessions owned by banks)
• We refurbish
• We sell to local buyers, mostly using a FHA (Federal Housing Authority) Government supported program
• Profits are split 50:50 between our USA partners and the investor.

Typically investors earn 20% profit in six months. Flip two properties a year and that's a 40% return on your capital.

We call that a Perpetual Money Machine! OK - maybe not perpetual, but as long as the market enables this process to continue.

As with all investments, there are risks. In this case the two risks are: a) a delay to the resale and b) a possible reduction in price if the property doesn't sell quickly. Our experience is that about 80% of deals happen within the expected timescale and 20% take longer.

However, the opportunity to earn up to 40% profit annually is exceptional and in our view substantially outweighs the risks.

That's why I call it a 'money machine'. Six months turnaround. Armchair investment. Cash to invest to develop your portfolio on a regular basis!

Download the Memphis Smart Guide

Watch the Memphis Video

Talk to Greg, our USA Portfolio Manager. Tel 0333 444 1440 or email greg@axiscontact.com

What do you think about these concepts? Will they work for you? Your comments are welcome.

Live with Abundance

Rod Thomas FCA 

Posted in Portfolio Building

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