@Ivan-fs7go
In your example you started with an asset $100 asset that cost money to maintain but let says you can sell it. You ended up with $400 liability and $20 asset. You’ll have 4 houses after you figure out how you’ll make $400 from that situation before those are repossessed by the bank
@Ohthesearenthomemade
And now you owe a shit ton of money
@prajangurung6122
Nicely explained..i would personally go for 1 house at a time in order to reduce risk and have decent rental income to cover mortgage.
@dariusandrews4490
You would number one need to own the first home free of debt... then be able to show proof of income that you can pay for 3 mortgages all at once....... thanks chief.. this will help a lot of people
@smith7388
Let’s start with teaching people to refi their home when rates drop. And, when this happened (if possible) don’t pull cash out and don’t extend years. The object is pay your house off sooner with 100% equity at a lower cost
@Lj22
And how would you get qualified for the remaining 80% if the 3 more houses if your income stays the same as it was when u bought the First house ?
@Run_GMD
There’s another great explanation about this to watch next - “The Big Short”
@OtakuBoxeador-k2d
Anyone else here obsessed with The Wealth Glitch: Cracking the Money Code? It’s like discovering a secret treasure map for wealth!
@smokecheckmaster5896
That only works if the 1st house worth $100 is paid off, otherwise, they'll loan 80% so if you have a house worth $100 but you owe $70, you only have access to $10, for the slower folks another example, if its worth $100 and you owe $60, the bank will loan you $20 so on and so forth. There was a point in time where I used a heloc for this, my house was worth $360,000 but I owed I think $170,000. The bank would loan 80% so you take $360,000, multiple it by 80% which gave me $288,000 to work with, subtract the $170,000 from that so i had $118,000 to withdraw.
@WigSplitter837
K so this makes sense in a way but let’s say you take 80 % and put 20 % down on the new house you want to buy are you then applying for a new mortgage for that new house ? And if so does the bank then consider all your other debt when applying for the new mortgage? How does that play out ? You keep applying for new mortgages every time you want to buy a new rental property? They always leave that part out in these videos , could someone please explain that part to me ? Like the bank is gonna say how are you going to able to pay for all these properties, oh ok so you got renters . What happens when they don’t pay ? How are you able to afford paying for all these properties if worst comes to worst ? Do you have to show the bank that you able to pay for everything if it comes to that ?
@natehiggers42069
This isn't "refinancing your home". This is more like a HELOC than anything. Refinancing is simply taking closing out your current mortgage by paying it off with a loan that has more favorable terms.
@UnorthodoxKnox
Correct, this is how it basically works. But you're overlooking that you just went $400 into debt on 4 homes lol... I understand increasing cashflow, (possibly) but you're severely increasing your risk doing this by like... a lot...
@UnbornHeretic
That is leveraging explained. Most refinances by far are rate and term refis
@nicholasfederico1448
People (without ownership) wonder why houses are so expensive, when homeowners are out here leveraging their assets to buy as many homes as possible for their own income. The hardest house to buy is the first, what chance do I even have? 🤔
@rafaelmanolaros
100% spot on with that being said please study extremely well the brrrr buissnes model before you proceed exicuting it. learning how to make the property cashflow its essential if not you are stuck with liability debt and its extremely dangerous. learning the location to buy is extremely important ( A,B,C,D). see what type of properties can be hacked and see what locations have high arv is essential as well. but most importantly if it cashflows. i hope god bless you all and your families 🤲
@ncvdiagnostics
The bank won’t give you loans for three houses more even with the 20%down you have to prove that you can pay the 5 mortgage payments include the equity you borrowed and usually will be some out of pocket if they are rented out not that easy Mr
@Dr1vrAI
Well, ignoring the fact that your income needs to cover the interest for $400 now, which in turn - depending in the regulations of your financial system - may not exceed 30% if it at a statistical rate. So no, it’s not that easy.
@flyhightytyflyhightyty-p2b
Biggest winner mentality shift for me came after reading the book The Wealth Glitch: Cracking the Money Code
@jamesdoherty2329
What happens if you can't get tenants or there's a large gap between tennants moving out and new tennants moving in. Wouldn't you have to cover the mortgage repayments on those houses? Which would be a fortune, possibly unaffordable. I'm not trying to be a smart arse, this is what is holding me back from getting into property unfortunately and i'm genuinely interested in your answer
@charlesmavros5719