Traditional thinking and traditional real estate investing strategies go something like this:
Save up for a down payment. Choose a property. Go get a mortgage for 60-80% of the value of the property. Spend your savings on the down payment. Acquire property.
Then repeat, if you want to grow.
That is what you’ve been taught, right?
Well, here’s the problem: saving up money for a down payment plus closing costs can take a while.
Here’s the other problem with scaling in real estate: when it comes to residential financing - aka - the mortgage - , the bank decides how much they’re going to lend you based on your personal income.
Eventually, you’ll hit an income ceiling. Then you can no longer buy rental properties in this “traditional way”.
That is until we heard about creative financing, OPM - AKA Other People’s Money.
Episode shownotes: www.lisamichaud.com/podcast/79
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