These people tend to tell that the key is to use capital that’s not your own – like from a bank. I understand how it works with common mortgage. But let’s say I already have a mortgage, thus own one property/real estate. Now I’m in debt towards the bank and they’re not giving me another loan to buy another flat since I need to be repaying the first one (?).
So, how does it work? Where do these people get the needed money to buy the second property? The third one?
In: Economics
The trick, when it was legal, was to
put a down payment on one
take a loan out using the first as collateral
Buy a couple more
Take a loan out using those as collateral
Buy. …..
And if you keep renters paying your mortgages to sell at a profit it works.
If you slip or are unlucky it all falls apart,
you owe a bazillion dollars,
you declare bankruptcy
and the people who gave you the loans are screwed
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