The question, submitted by one of our users is as follows:
"My enquiry is about whether the levels of debt in my real estate investments are likely to adversely affect my intentions to buy into a pharmacy partnership. I am currently contemplating whether to use the equity growth in my first investment property and some savings to buy a second property. If I were to do so it I would be borrowing 90% of bank valuation for both properties and would have limited savings left over. My plan would be to continue to patiently wait for a pharmacy partnership to appear and if necessary use some family money (if there is insufficient available equity at the time) to raise the $50-$150k that I’m told is required by the banks to enter the partnership. I’m concerned that taking on too much debt in my property investments or that using family money to enter the partnership might not be viewed favourably by the banks. Would I be better off following this plan or sitting on my savings until a partnership is offered to me? Thanks for your advice."
To view the response to this question, please visit Ask An Expert - Medici Capital's online knowledge base. Any comments to this article are welcome!
If you would like to ask your own question, you can Ask An Expert for FREE!
Advertisement: