Im 17 and want to start a property developing company?

Deal Score0

How would I go about this financially?
My family have no money that they could lend me and I’m at school full-time.
I have alot of knowledge of property developing and the market and I would start small scale.
How would i get a £95,000 mortgage and £15,000 loan.
In the UK.
I’ve researched my area from run down proerties and they’re is alot I know I could do.
I classed as an adult in most things on the UK.

2 Comments
  1. Reply
    Chris
    January 26, 2011 at 1:29 pm

    in the current climate when it comes to properties and value i would not reccomend doing anything that stupid

    any way 17 (my age) is too young go download porn its free lol

  2. Reply
    Curtis H
    January 26, 2011 at 1:32 pm

    Firstly credit where credit is due; the very fact you are thinking in this manner at this age (and I mean you no dis but that comment) is to be highly commended so if at first you don’t succeed for goodness sake don’t give up; you cling on to that hunger for success.

    OK to business than; you don’t have a portfolio so we start off with the chicken and the egg; how do I get a portfolio going without a track record and how to I secure an advance without a property portfolio? If you could answer that one accurately, in itself it will make you money.

    Where then have you gained ‘a lot’ of knowledge and how? Knowledge of a subject normally is attributed to a combination of events such as knowledge qualifications and experience (chicken & the egg again that latter one 🙂

    Experience tells me that you are highly unlikely to secure an advance of this magnitude; the first question anyone would ask you is “how will you repay the loans?” This in itself presents a quandary and to develop by definition means it will require a level of restoration which requires additional capital and input from a project management point -of-view.

    I think is is not therefore about ‘how’ but when you are likely to start the mortgage/loan process; it is not simple anymore with a general reluctance to loan on all but ‘guaranteed’ investments in terms of immediate returns in the event of default.

    For example; you pay £110,000 plus fees for the property. Which clearly represents a 100% borrowing commitment and will as I mentioned require additional capital to progress the investment (immediate negative equity) loaning this level then means that if you fall into default the loans will require settlement and the likelihood is on the balance of probabilities the property will sell for much less based upon an immediate sale (probably at auction) Likelihood therefore is a 50-75% mortgage for investment purposes or buy-to-let is about the best you will get (if you are very very lucky) and equity will be secured against the property but within one month you will be required to make repayments; it greatly depend s then how quickly you can move this first one.

    You haven’t asked, but if it were me in your shoes, I would complete my education, move into this as a short term career perhaps even on a commercial basis then once stable I would look to start this off for myself; you are then armed with experience, probable qualifications, determination and grit and perhaps most importantly some cash you have saved; this is a good sign to any lender so don’t underestimate it.

    Good luck and don’t dismiss it if it is what you really want to do.

    Curtis

    Leave a reply

    Register New Account
    Reset Password