Have you heard of loan compression strategy or multiple loan submission technique?
It happens like this:
A real estate developer is offering a massive 30 – 40% discount for its units. You would be getting disbursement via a cash-back amounting to six figures per unit. If you are up for it, you could use the ‘cash-back’ to service your mortgage easily. In other words, you are ‘paid’ to buy real estate from the developer. Furthermore, you can purchase multiple units with maximum LTV using the loan compression strategy.
Really, is there such a thing today? Or, is it just too good to be true?
Using the method, many novice first-time buyers not just purchased several units with little or no money down, but they also got paid cash upfront in hundred of thousands Ringgit. On the other side, there are even more seasoned investors who are in doubt and stayed away from over-leveraging.
Let’s debunk it.
We’ve got Dr Victor Gan a.k.a Property Doctor on my next 1-Hour Live Webinar. Dr Gan is a professional medical doctor and has already accumulated himself 20+ properties by using the principles and wisdom of ‘Value Investing’. He is the author of the recent hit Facebook article called “How To Die With Massive Debts”.
During the webinar, we would discuss:
– What is a ‘Cash-Back’ Property Project?
– Is it ‘Safe’ to buy a ‘Cash-Back’ Property Project?
– Explaining Negative Gearing in Property Investing.
– What are Multiple Submissions or Loan Compression?
– What is the Difference between Price and Value of a Property?