If it weren’t for the issue of getting finance, I would own double the properties I have today. So this raises the question; how do you finance a large property portfolio?

Obtaining finance has been, and will always be, an evolving journey. Criteria for lending changes, the market changes, your situation changes and different lenders assess things differently. When you hit that borrowing wall, you need to think outside the box and find another way through.

Let’s look at a few ways to do this. Firstly, to maximise equity so you can keep investing, buying below market value is a great place to start. When you have enough equity in your property portfolio, and your lending has been restricted, you can begin using it to buy properties in cash.

By doing this you will then have unencumbered titles under your belt, which can change your financial status in the eyes of lenders, and will help you get more finance to purchase more properties.

You can also create some ‘sweat equity’ by renovating one or a few of your properties. This will help actively increase your equity and cash flow through the ability to obtain higher rent.

With a bit of clever thinking and a strong asset base behind you, there’s no telling what you can achieve!

What strategies have you used to finance your property portfolio? Share your experiences with the Lyons Property Mentoring community in the comments.