Who Should Participate?

It will be no surprise that investors who have either no money, or very little in the way of resources are clamouring at Axis' door for No Money Down property. Participate in No Money Down

It's superficially very tempting - to be able to build a portfolio when in traditional investment terms you may not be able to afford even one property.

However, we have a very strong view about this. Fundamentally we don't believe that ANY investor should use No Money Down funding techniques unless they are in a situation where their financial situation is secure and appropriate to invest even without using No Money Down techniques.

We appreciate that some investors may disagree with our view, but our concern is that investors do not make decisions which come back to bite them later on. The risks to would-be investors with no money and no assets are simply too high. Their focus should be to sort out their own life until they meet the criteria below.

Put another way, our view is that the Axis way of Low Money Down investing is safe, secure and reflects a fair commitment in return for an exceptional profit and good current cash flow. We believe that LMD should be the first approach for most investors on most deals.

However, if a client has investment experience and good cash and equity resources appropriate to their investment plans then No Money Down can be a viable option for the right deal. If they shouldn't be investing in property because of their financial situation, then No Money Down investment techniques do not change that.

What's The Minimum Credit Profile For Low and No Money Down Investment?

After many years in this market we've developed some guidelines that work well as a benchmark for new investors:

1. Excellent credit score. No late/missed payments. No CCJ's or defaults

2. Own your own property. Mortgaged is fine. Minimum 25% equity

3. Provable income for last three years of minimum £25,000 pa

4. Available liquid cash reserves of at least £30,0000

5. Availability of further £10,000 if necessary from quick borrowing / asset realisation

Having this profile demonstrates three things:

You are a good risk for a buy to let lender
You have some cash available to contribute to deposits, fees and costs
You can cope with unforeseen costs like an unexpected tenancy void, or expenditure that was not anticipated

More Cash = More Deals

Not all Low and No Money Down investing is the same. Most loan finance requires a 20% to 35% deposit. However we also have specialist finance providers which require considerable up front payments but provide investors with Portfolio Facilities up to £1m for highly leveraged deals!

To benefit from this, investors will need between £30,000 and £50,000 of available funds, most of which are recycled as each No Money Down deal completes.