What a fancy name for blind greed

Leverage amplified profits as well as losses. With loan interest rate on rising trend, many could become financially stretched.

Here I share with everyone the best real case example of loan compression / multiple loan submission.

4 units buy sekaligus with 4 different banks.
Now all 4 units in lelong market. All under the same owner.

Noone should ever listened to any guru. While buyers suffer with wrong and unethical tactics, gurus r living lavishly with their comm earned thru the con skill.

人是要靠自己的

This post has been edited by ManutdGiggs: Sep 9 2018, 08:57 AM

At current market sentiment; after auction, the buyer/borrower may ended up with about $1m personal liability. Zis financial standing could be ruined for the rest of zis life.

Believe this trick was used rampantly, expect npl at these banks to climb and a generation of investor ended in doldrums.

This post has been edited by icemanfx: Sep 9 2018, 02:40 PM

oh so fast ?

these days got people declare bankcrupcy a lot ?

Simply listen to property guru blindly will ruin you financially.

Before sh!t hit the fan, this was widely promoted as a good debt.

Basically, blinded by greed on cocr. Wonder how many of uuu/BBB herd members are on this boat.

This post has been edited by icemanfx: Sep 9 2018, 02:37 PM

What is the purchasing price?

serin condo quite ok. well maybe greed too much

No wonder I see so many empty and abandoned houses everywhere. This method can be bad for people who really want to buy first house and own stay (imagine buying a condo and half the tenants there did this loan compression method and failed, not only they will stop paying maintenance fee but the condo will soon go down in management and result it in becoming a shit hole).

anyway to save the shit hole?

No idea, it really depends on the management and community
Are you or someone you know going through something similar?

i getting good deal from shit hole

Loan compression after speaking to a lot of people who have done it should only do if:

1. The possibility of getting cash back is high not 10 to 20k but 30 to 50k range. If stories are to believe some as high as 100k per unit. Once you get the money you are supposed to renovate the place and rent it out as rooms. Alternatively I met this very smart commodities trader who used his 200k cash back from several loan compression deals to invest in silver. He made a ton of money but brains like him are only 1 in 10,000 we are all probably not like him.

2. It is an alternative way to raise business financing.

3. Do it only for HDA properties

4. Not advisable for those in their 20s. Better if you are an experience investor who already has 2 or 3 properties

5. Note though those doing loan compression must be aware that even if you partition to rooms you still be on negative gearing for many years. You are advised to keep some of the cashback money in some fixed deposits to support loan repayment

6. Met a person who did it for 8 properties got 1 million according to him. Sold 3 of those properties at a loss but according to him he will still be positive even after selling at a loss due to the cashback.

After much taught I am too old school to do loan compression. Just keep to the tried and tested method of buying one and selling one property every year. So far works.

Currently doing it, mixing between subsales and completed developer projects.

Total property value~2mil
Monthly installment~9k
Cashout~500k

My biggest concern is the margin cut to 70 percent, hence all the units I sapu are 40 percent below market. Good enough?

Okay, as long as you able to service your loan.

Good luck.

The key to this seems to be your holding power, as long as you have enough cash to sustain the installment, maybe 3 years minimum.

Like 9k per month, means if you have cash of 300k on hand.

40% below market price, sounds attractive especially if landed.

Mean value of collateral held by bank is over inflated.