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
First, let’s get something out of the way: lots of people are liars. Either they don’t own what they say they do or they were much wealthier when they started than they purport to be.
Most of what you see is people buying rental units. They have tenants and income. The tenants are paying back the mortgage in effect.
This was easier when interest rates were low.
We have a rental price runaway problem and predatory landlord situation precisely because organized investors (like, companies not just individuals) are exploiting the rental real estate market.
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