Hi Steve,
We have just finished reading your book. We actually posted this query in a different section, then realized that there was a section specifically for questions about your book.
After we read your book, which was very inspirational and informative, we were a little confused. The way we read it is that you saved the deposit and closing costs to buy each property, which is an accomplishment in itself, then used the equity of each property to buy the next. Did we read this right??? Then our question is, If so many properties were purchased in such a short period of time, how did each property build enough equity to borrow so much for the next property? Or, were you borrowing on, not so much what had already been paid off each property but a percentage of the marget value of that property? Confused!!!!David and Lesleigh
I provided this answer to your other post:
Guys, my understanding of what Steve and Dave did was to buy a place for $50K, with $10K deposit, and then wrap it for say $60K, with the $7K FHOG, plus some of the purchaser’s own money, maybe $3K.
This then gave them their $10K to go and buy another house with.
Cheers
MelThanyou very much for your reply Mel. Very much appreciated.
David and Lesleigh [
]Originally posted by melbear:I provided this answer to your other post:
Guys, my understanding of what Steve and Dave did was to buy a place for $50K, with $10K deposit, and then wrap it for say $60K, with the $7K FHOG, plus some of the purchaser’s own money, maybe $3K.
This then gave them their $10K to go and buy another house with.
Cheers
MelAgreed. Also they have a large deposit from there accounting firm.
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]Yes, also remember in the book, Dave worked to assist the deals financially, whilst Steve did most of the researching of properties etc (hmm… i think that’s how it went ?[
])REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Hi David & Lesleigh,
They also sold a few along the way!
When a property had appreciated in value, they would sell it, pay out their loan & with the profits from the capital gain, move on to buy two (or more) smaller properties again. And so on, and so on! Basically, sell one, buy three!
Not a bad way to accumulate property.[:o)]
Bye,
Del
very good way to accumulate property
If You never never ask, you’ll never never know”
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