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How Leverage Can Make You Wealthy
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If you're using your money and/or your credit by real estate, you might want to reconsider. Ultimately it's a personal decision. There is no absolute wrong or right but there is a right answer for YOU. But unless you have more money than the US Treasury, you're eventually going to reach a point where you can't buy any more real estate.
If you are using your credit to get mortgages in your own name to buy houses, you're eventually going to come to a point where the lender will look at your credit report and refuse to give you another loan. Whether that's after buying 3 houses, 10 houses, or 20 houses depends on other factors but it will happen eventually.
Anyone who puts multiple mortgages in their name is risking their credit. What if something happens and you find it difficult to make timely mortgage payments one month? Lots of investors thought they'd never find themselves in that situation only to find a trashed house and missing tenant who obviously isn't going to pay the rent. Many have earned their Ph. D. from the school of hard knocks and it's not pretty. Are willing to risk that scenario?
A much better way is to buy properties "subject to". It may take a little more effort to find motivated sellers who will agree to let you take over their payments while the mortgage stays in their name but they are plenty of them out there. All you have to do is find them. Using other people's money (OPM) unleashes the power of leverage and removes the limits lenders place on you.
There's no reason for lenders to check your credit when you buy property "subject to" the existing financing. That's one of the many advantages of learning and using creative real estate financing. Whether you take out mortgages or use creative financing is really a personal decision but you'll learn the art of buying houses "subject to" and many other useful techniques in my Real Estate Investing Online Home Study Course.
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Finally! Breakthrough Real Estate Investing Online Home Study Course Allows You to "Look Over the Shoulder" of a Successful Real Estate Investor as He Reveals Step-by-Step How to Cash 5 Figure Checks Buying & Selling Real Estate...100% Guaranteed! Visit the Real Estate Blog to learn more.
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