Borrowing against property

You can borrow against other property to purchase management rights.

The Banks will consider up to 80% of the market value of your property less any current debt.

eg: your house is worth $800,000 with a debt of $200,000.

$800,000 x 80% = $640,000

Less current debt $200,000

Available equity $440,000

(This amount would allow you to consider a business around $1.2M subject to the income being sufficient to service loans, taxes and general living.)

Whenever you borrow against property to fund the purchase of management rights, it can create a strain on your cash flow as the majority of your income goes towards loan repayments.