Smart financing for flips for entrepreneurs at the outset
Hello friends, I wanted to raise a point here to think about funding for entrepreneurs who make flips mostly, but not only.
I assume that most of you are aware of it, but from my conversations with all kinds of people and entrepreneurs at the beginning, it seems that not everyone thinks about it or knows how to do it.
For beginning flippers who are looking for sources of financing, and have a property in Israel, it is possible to take out a mortgage on the property in favor of investing abroad.
So far I know I have not revealed America to you…
But, many people who want to take out such a mortgage, ask themselves how they will pay the monthly repayment, while the money "lies" somewhere overseas in a property that does not generate income for many months, especially if it is a large amount taken from the bank.
So here's what I did:
I took a mortgage from the bank in the amount of X, and from the amount I received, I set aside an amount that would be enough for me for about a year and a half to two years for the monthly repayments of the mortgage, and I sent the rest of the money abroad for investment.
For example, 500 takes NIS 1,000 for 20 a year, with a return of about NIS 3200 per month.
3200 * 24 = 76,800 ₪, this is the amount you leave aside for the monthly repayments, and will give you two whole years of mortgage repayments in a quiet mind, and will leave you 423 ₪ 1,000 for investment.
I put aside the money I put aside as a loan to the social loan platform (P2P) at a very low risk level, very high liquidity, an excess yield over my bank interest on the mortgage, and a permanent order to withdraw the amount of my monthly repayments directly to my bank account every month.
In this way, I have the freedom to use the mortgage money in my improvement project, with enough time to make a profit, part of which will go back to Israel, and will also be introduced into the same social loan platform to continue to create a mortgage repayment capability.
Of course, in order to receive good terms in such a mortgage, which is defined by the bank as a loan for any purpose, a signed contract must be brought with the seller of the property, thus improving the terms that can be obtained from the bank.
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
- Thanks for sharing Amikam. Highly creative.
- Thanks. interesting.
- Very creative !!!
Well done and a nice and interesting thought.
- Give an example to such a platform
- Super creative and cool Amikam !!!!
- I've created a lot! Which p2p platform are you using?
- Well done - this is what we do as part of a process of financial advice to our clients.
- Very nice
I also thought about it
But it was not interesting
- I loved creativity
- Interesting thank you
What is the interest rate on such platforms? And you recorded that if you present a signed purchase contract to the bank, the terms of the loan will improve.
Have not encountered a problem with times? That is, once you had a signed contract, you started the process of obtaining the loan?
Or have you started the process before, and when you had the contract signed by hand introducing it to the bank to improve the terms?
- Orr Kichin We just talked about it ...
- I suggested to friends the idea of taking out a larger loan for the repayment, but the idea with p2p loans undoubtedly upgrades that. Excellent and creative tip ??
- Very creative.
I myself use social loans as my security fund (as a platform for accumulating initial investment capital)
- Great idea and I will add that you can take part of the mortgage money and invest it in the US as another hard money lender of another investor who repays the monthly repayment
- Thanks Amikam!
- This is part of the financial planning basket I make for clients in an investment plan.
The current cash flow funds received are only in triplicate (in the full 100 collateral and liquidity track) as money parked and accumulated
- Racheli Asulin Hindi Chen Lerner Ben Lerner
- If I am not mistaken, I saw a discussion here in the forum that claims that the bank in Israel will give only a small amount that is intended to renovate the property in Israel and not a significant amount according to a certain percentage of the value of the property.
Is there experience with this?
What is the percentage of the value of the mortgaged property in favor of the bank in Israel that can be obtained?
- Very nice! thanks for sharing.
- Thank you, indeed a good idea.
I would be happy if I would improve on ways to improve conditions in front of the bank
- Is that exactly what I did?
- Daniela Weissman
- Very nice
- of genius
- Keeps track