hey guys,
this question just came out to my mind.
Steve said that he was not working during the time where he spent most of his time searching for properties to invest in. He has an allowance from his wife which is $400 per month.now, if he is not working..how did he managed to get financial loans from the banks on few houses? what more up to 130 houses.
I cannot work out how did he get the bank loan.
can anyone lighten me up with this matter?
G’day Paul…
He no doubt did just as I had to when I started out in 1971.
Creative finance. That is I did not borrow more than the loan could be serviced by the rents. The balance I got the vendor to leave in on an unregistered 2nd mortgage…and that was 3 units.
Within 6 months I purchased a 1/3 share in 42 units at $550k(1972 dollars) plus costs… no money down. We had 90 days to resell as individual units to prove to the Bank that we were a safe bet…we sold and settled in 60 days… the rest is history.
Steve would have found it tough on the first few deals… but keeping promises and acting with integrity you can do it too.
I would NOT start today, but wait for this market to come off the boil…be patient…you may need to weait 1-3 years.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Hey Bill,
thanks for the quick reply. I’m still confused with some terms you are trying to explain. Sorry for being unknowledgable with properties as i;m still new in property area.
when u say 2nd mortgage…does it mean refinancing the house?
another question to you Bill would be, i’m currenty renting a place in Adelaide city and i was thinking is it a better option to rent under LEASE Option as a student rather than paying rent to the landlord for his passive income…
Regards
Gday Paul,
it wasn’t just Steve working all by himself. Remember Dave? he stayed and worked in their accounting business while Steve went out and looked for deals, they were like a partnership.
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