You have always been careful with your credit. All of your payments are made on time, you probably drive a nice car, and of course you’re dressed well. The thing is, you have never purchased a home. Perhaps that’s because you haven’t been aware of your ability to do so. Perhaps it’s been because you’ve listened to the advice of less fiscally prudent individuals, and you too have come to believe that buying a home in the current market might not be the best decision. We’re here to tell you why that’s wrong, and were going to show you how you can use your own personal financial ability not just to purchase one home, but to purchase more than one home, and if you’re good enough, to even flip a few homes in the process.
Contrary to what most people have been advertising in the news, or saying on the television, now is the perfect time to buy. In actuality, you should be buying not just one home, but more than one; provided you have the personal financial ability to do so. If you are reading this article, and if it sounds like we are talking about you, and we probably are, then you are ready to learn the secret.
Here we go; let us take your average homeowner, who can realistically afford a $100,000 mortgage. Now let’s rewind a few years back to the housing boom of 2000, when this same individual was given the credit to purchase a $300,000 home. Since you already know how housing loans work, with the interest paid up front, and nothing really paid on the principal for the first five to ten years, you can see that this person is at three times their financial capacity with zero equity. At this point the only one who’s made any money is the bank. Realistically speaking, this homeowner has essentially been paying three or four times what they should have been paying simply to rent. It is a foregone conclusion that they will default, and the bank will be forced to foreclose and sell the home at half of its value. That is the part where you enter the picture.
How this works to your advantage is that you will be using personal financial ability as opposed to credit, enabling you to purchase not just this home, but also several other homes on very favorable credit terms. Then you can rent them in a market that is currently flooded with pre-qualified buyers who just lost their homes to foreclosure. You see, the homeowner in our example is still capable of realistically affording a $100,000 mortgage, and they still need a home for their family. That means they are basically prequalified. The problem is that they have just gone through a foreclosure, and are not able to buy another home just yet.
This is ideal for you, because now that home prices are back where they belong (even a little lower in some cases) you want buy as many homes as you can. In order to keep them, you need to rent them to qualified buyers so that you are able maintain your assets. With the income from your rent you’ll easily be able to make the lower loan payments expected in this depressed market. This will allow you to keep possession of several homes for a number of years until the market has rebounded, and you’re able to sell the homes at their appreciated value, while having enjoyed the tax benefits, and rental income for a period of years. Welcome to the millionaire’s club.
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