Mission Possible???
10 properties in 10 years? Think it’s impossible? Think again!
Whether you’re a novice investor or a seasoned player, these tips will help you reach new heights and achieve the seemingly impossible.
Dive into this guide and start your journey to realizing your dream portfolio!
99% of people are unaware of these real estate secrets. With this knowledge, you can buy up to 10 properties in 10 years.
- The First Hurdle: Down Payments
Most people can’t buy 10 properties due to heavy down payments. It’s known that for the first two residential properties, you can borrow up to 90%. However, the third property loan limit drops to 70%.
Here’s a trick to secure 90% loans for your first four properties:
- The first two properties, borrow from AIA.
- The last two properties, borrow via regular banks.
This way, you secure 90% loans for four units.
- Debt Service Ratio (DSR) Burst
A common issue is the DSR Burst. The solution is simple:
- Invest in soon-to-be-completed or already built properties.
- Developers often have remaining units you can buy.
Rent these out for a few months to boost your DSR, then buy another property.
As stated, you can borrow up to 90% for the first four units. What about the fifth unit onwards?
Do the loan limits revert to 70%?
No way!
For the fifth to tenth properties, buy commercial-titled properties. Regardless of the number you purchase, as long as your income supports it, you can borrow up to 85% loan quota.
This strategy saves significantly on down payment costs.
