Ajay Ahuja Blog Post on No Money Down and The FSA

No Money Down investing has been with us for many many years.  It used to be the privilege of the rich but with buy to let mortgages being introduced in 1996 and clever financing techniques landlords like me and many others were able to build massive portfolios.

Fast forward to now and yes there are buy to let mortgages but very few of them.  All it takes is the lender to spot the loophole, close it and then everyone goes back to the thinking room and come up with other neat inventive ways.

Now problem is FSA are involved in buy to let mortgages to some degree and they want so many questions asked it will become difficult to an investor to buy no money down with high street buy to let mortgage providers.

If things go according to the FSAs plans then buying no money down with buy to let mortgages will disappear.  Then no money down is left to professionals who have access to commercial finance.  I have access to commercial finance where a deal is done on a hand shake.  No application forms, no signatures and definitely no FSA.

The only reason I have access to commercial finance is because I have significant borrowings.  Commercial lenders want to know me because I have a lot of debt and I have a lot of liquid reserves which these banks want to get their hands on!  I am worth knowing which is kind of flattering but not really when you think about it.

So how did I get such large borrowings?  Well I bought property.  Simple.  I just bought, bought and bought.  So if you want a commercial lender become someone who a commercial lender would want to know.

So I would suggest to start buying before all the NMD techniques get closed.