HOW TO GET WEALTHY WITH SOMEONE ELSE’S MONEY
I used to focus on how much I could earn in a year. But my financial priorities have changed completely. These days my focus is on how many GOOD assets I can acquire in a year because they grow in value much faster than my earnings can.
I learned that it is possible to buy an investment property with very little of your cash and still buy another property soon after.
Here are our top five tips:
1. BUY AT A DISCOUNT:
You make your money when you buy. If you buy a discounted property, you make an immediate unrealised profit that you can access sooner.
2. APPLY FOR 100% FINANCING:
The less of your money you use, the better. Remember, even if the bank does not give you 100% financing, you can obtain the deposit you need to put down from other sources.
3. REGISTER THE BOND AT OR EVEN ABOVE MARKET VALUE:
It IS POSSIBLE to do this! This does not mean you can access those funds immediately, but it does mean that you can access those funds in the future when you refinance without having to register a second bond.
4. BUY IN AN ENTITY SUCH AS A TRUST:
Do not buy in your name! Not even one property. Every property in your name is debt that limits your capacity to obtain financing for future deals.
5. REFINANCE TO MARKET VALUE AS SOON AS YOU CAN:
Since the bond is registered for market value, you can refinance the property to that value after six months to make cash available. Use this to pay yourself back what came out of your pocket and use the rest to build your reserve fund in an access bond. Or just go ahead and purchase your next investment property!