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
Buy one property. Rent it out for more than the mortgage. Now the renter is paying for it for you.
Show the bank that the first property is self-sustaining. Get a second loan, since you’re a safe bet, since you have someone else paying that first loan for you.
Buy a second property. Rent it out for more than the mortgage…
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