As you may know, I am known in the property investing as “The WTF Guy. Who Have Bought 23 Properties by 30”.
And to achieve this, I need to be able to get my housing loans application approved..every single time.
Now, how do I do that?
Let me debunk a few myths in property financing for you:
MYTH: You need to have a huge salary to buy 23 properties.
FACT: Earning huge salary does help when it comes to buying properties, but if you know my story, I bought my first property when I was earning only RM2,500 per month from my day job. When I bought my 3rd property, I was earning nett RM2,800 per month and having loan repayments of RM2800, so technically, I shouldn’t qualify for a loan right? Yet, banks still proceed to borrow me $$$ to buy properties.
So, how do I get more and more loans for my property investment?
The answer, can be shockingly simple for some of you. All you need to do is to proof to the bank that you can afford to pay back the loans. One of the source of income is rental income. And if you noticed, the 1st 5 properties that I acquired, was all completed with great rental income. While my salary was RM2800 nett, my nett income from rentals was a cool RM2500. Thats the reason why banks were willingly lending money to me to buy properties.
To summarize on how can you buy many properties and still get loans for it, you need to do the following :
1. Buy completed properties with decent rental income.
2. Make sure your rental income is documented
3. Tenancy agreement signed
4. Rentals credited to bank account,
5. Tenancy agreement stamped.
For example, you bought your 1st property. It’s a 3 bedroom highrise apartment, at RM350,000. At current rates, you need to pay around RM1,900 for installment and other associated costs like maintenance etc.
Lets say, you are able to rent it out for RM2,500. That is extra RM600 per month from this property.
After 1 year, you bought another property at the same price, and able to rent it out at the same price too.
So, income from 2 properties is RM600 x 2 = RM1,200.
With this extra income, you are able to purchase a 3rd property with value around RM200,000.
Now, as you can see, within a short period of time, you have added around minimum RM800,000 of future-net-worth to your property portfolio. And all you need to have is a RM4,000 monthly salary to start and make smart buying moves.
But do note that using the right banks is just as important as knowing what to buy. Not all banks recognizes rental income fully and some banks calculate and analyze CCRIS and DSRs differently. SO its important to approach banks that are hungry to give out loans and will be more likely to approve your loan application. These are what I call as HOT BANKS.
So if you want to know how does the banks sees you and which HOT BANKS today that are hungry to approve your loans, do join us at the next Sarjana Hartanah here : http://faizulridzuan.com/