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 how investors get multiple loan, how investors get multiple loan

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arthurlwf
post Mar 6 2010, 11:34 PM

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A scenario question (example only):
Say...
1) An investor bought a property price at RM 150k with monthly repayment of RM 750 to the bank. And rent out RM 750.
2) After x months, investor bought another property price at RM 150k with monthly repayment of RM 750 to the bank. And rent out at RM 750.
and the process continues for 10 times...

After 10 times, the investor had bought a total of 10 properties price at RM 1.5 million with loan RM 1.35 million (assuming down payment of 10%).
And currently repayment to the bank of RM 7,500 to the bank and rent out at RM 7,500.

Say, 5 years has passed and everything looks good until something happen... and 8 unit is unable to rent out for 3 months already meaning the investor have to fork out RM 6k every month to the bank... once the cash flow of the investor is getting thin, and unable to does the RM 6k repayment, then what is the next action???
Below are the assumptions:
- Unable to find renter for the 8 unit
- Less people wanted to buy the property
- Buyer offer way too low to buy the investor property
arthurlwf
post Mar 9 2010, 06:22 PM

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QUOTE(eric.tangps @ Mar 7 2010, 01:54 AM)
I highly doubt there would be a banker financing such escapades of acquiring say.. 10 units of house for rental if the income (main source) is unable to sustain the loss of rental.

Repayment : RM 750 x 10 = RM 7,500 p.m.
Rental : RM 750 x 10 = RM 7,500 p.m.

If Income is say. RM 3,000 p.m. still unlikely to get all 10 units.  Besides there is lower margin of financing to consider.

That is why commercial unit would be better bet if you rented out to say..Pizza Hut or some other notable companies.  Bank can consider assignment of rental proceeds to hedge the risk of non-payment.

Still RM 3K vs RM 1.5 M loan ?
*
Is the red color statement confirm as in bank loan policy pre-requisite??
The scenario does not account for purchasing 10 units at one time...
arthurlwf
post Mar 21 2010, 03:17 AM

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QUOTE(R o Y @ Mar 13 2010, 01:53 AM)
Yup, I heard they usually wont approve if you already have many loans.
*
But assuming if a person has bought 5 property and all are rented out and can cover the bank monthly repayment, and his salary is RM 5k.
Can the person continue to get loan for his/her 6th property? hmm.gif

 

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