How does an individual gather 5, 10, 20, 50+ units of real estate?

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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

17 Answers

Anonymous 0 Comments

Most people lie, especially on social media. Don’t trust everything you see, but…

Most people who own multiple properties in a rental portfolio had a huge advantage through rich parents. It might not have been as literal as their parents handing them 400k for their first properties on their 18th birthday but at the very least had finances to help part way or finance the child to live rent free to save up a deposit.

Much more rare but some people hit it big selling companies they created in their early 20s. My friend from school was from a poor family but created a clothing brand he sold for 4m. He then went into property development.

Most of these self made property Devs were never self made.

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