QUOTE(BEANCOUNTER @ Dec 16 2018, 09:38 AM)
if a person can get 5 loans now, with loan compression he can get 25 loans, provided timing chun chun.
most persons will no have the capacity to pay 5 loan installments at the same time, therefore loan compression strategy is to flip the property upon Vp, taking profit straight away.
another name for loan compression is also known as 'rob the bank' method. when banks want your biz, they will pretend they didnt know anything. however when banks dont want your biz, there is more than 1 way to catch these people.
Sorry dude, i am not clear about the loan payment
Let say the guy is not capable for 5 houses, how he gonna pay the installment before VP ?
Is it for under con project i no need to pay installment before VP ??
QUOTE(AskarPerang @ Dec 16 2018, 11:26 AM)
Buying those 5 houses, if and only if your DSR allow to buy all 5 houses, you still need to fork out more money for the 3rd, 4th and 5th unit.
Assuming developer giving 10% rebate (zero downpayment needed)
1st house - 90% LTV, 10% rebate
2nd house - 90% LTV, 10% rebate
3rd house - 70% LTV, 10% rebate, 20% you need to top up with cash
4th house - 70% LTV, 10% rebate, 20% you need to top up with cash
5th house - 70% LTV, 10% rebate, 20% you need to top up with cash
By doing loan compression, 2 advantage:
1. DSR burst. meaning example ones income maybe can loan max a 600k property only. but by abusing this loophole, he/she now able to loan 5 X 400k to 600k property. Instead of buying 5 X 120k to 150k property.
2. 3rd, 4th, 5th house all getting 90% loan from bank as explain above.
Great info bro
But another question, is it possible to do 100% loan? So when there's 10% rebate, i will able to overloan and get 10% of extra cash flow??
Sorry sifu2 for such newbie question... just interesting to know more