How do property developers get so many mortgages?
I mortgage well private mortgage on my mums house which she owns outright, and set up is a contract with solicitors etc involved so i pay her a certain amount each month hence i don’t ever pay interest on a mortgage.
But i want to buy another house at auction to developer and sell on, or maybe 3 or 4 and rent etc but how do you get the mortgage for so many houses?? Im a bit confused. Cheers
The banks have large sums of money that they need to loan out. That is how they stay in business. They can do 100 small loans to 100 home buyers. Or they can do 1 loan to a developer who wants to build 100 houses.
It is difficult to get the bank to trust you when you do your first 3 or 4 purchases. You might have to borrow money from friends and family. But once the banks see that you are successful, they will offer you loans to do what you want.