How To Borrow One Million Dollars On A Middle Class Income (Link)
 

No collateral? No problem! How one 33-year-old with no house or car, a modest income and unpaid student loans was able to borrow a million dollars.

http://www.canadianbusiness.com/my_m...06_111056_5080

A bit to read but interesting none the less :thumbsup

DH

interesting :thumbsup

Heh.... get rich scheme or get bankrupt scheme? :winkwink:

I read 3 or 4 pages, pretty interesting and nicely written

America....


Mr. Romance

Can anybody summarize how?

fuck yeah!

Canada actually.

Goes to show how easy it is to get in debt way over your head when borrowing is so damn easy

1 million Canadian dollars or real dollars?

that artcile is bs.... just because the salesman told him hi will get approved it does not mean that it will actually happen.......

Real Estate. Lendors in general are very willing to lend towards real estate given no prior credit problems. In this case with his 15000 down payment he was able to borrow 300,000. Once he brought in his father as a cosigner they let him borrow upwards of 700,000. Its not hard to borrow towards real esate simply becuase if you do fail on your payments, they repossess a house worth equal to or more then what they lent after they factor in the down payment. This was also after trying through three or four different mortgage brokers and finally found one willing to file inaccurate data. Also the 1 million dollars is a combination of the car and two houses as well as a credit card. Had he actually gone and bought any of those prior to the 700,000 dollar house he would be immediately denied.

he bought a car, a house and another house

Ok so their is no mystery to how he did it. He had a cosigner to cover it. If he defaults, his dad is up shits creek (or maybe his dad is a multi-millionaire and it won't hurt his pockets). It's not his collateral at stake, but it is his dad's.

:offtopic


















Now spend a few minutes in my Sig :thumbsup

The whole point of this exercise was to show how easy it was to get loans not the accuracy of this guy's personal loans.

DH

even without his dad cosigning he was able to borrow 300g's with a net worth of 8,000 and mid range income. as mentioned before me this is only to show how it is too easy to borrow money. I know the dealership that sold me my car lied on my application. They lent me 30 grand with no collateral and 2 weeks working for 20g's a year.

DH, has this been true in your experience:

"And the first thing he tells me is that I'm actually less likely to get a mortgage for a rental property than a single-family home." ?

Yeah that's very true, it's easy to get them right now.

Yep very true, what is the guy doesn't have full occupacy of his property and or what if one if his renters doesn't have the means to pay their rent one month.

This guy's income obviously won't support the entire mortgage payment on his own. The only way the lender would lend the money would be if the buyer had 25% down.

I can usually get away with 15% down but I have the income so my ratios don't get out of wack. Mortgages are just a game, if you know how to play the game it's easy to win.

DH

Interesting. I see what you mean.

Fuck, I can afford $6000 a month in payments...

Where do I sign?

Sign right here and pls send the 1k application fee to my Epassporte :Graucho

My wife got loans for 3 houses while she was unemployed with no income and no assets. I didn't co-sign and the cars and our personal house is in my name only. Basically, I put her on a few of my credit cards and bank accounts and it built her credit score up to an amazing level over the course of a few years. She actually had good enough credit to buy 9 houses if she wanted to, with nothing down, no collateral, and no income. This is a crazy country.

hmmm very interesting :)

I don't feel like reading all that shit...somebody run it down to me

Even more retarded:
"A woman with little income and meager assets buys 10 properties worth more than $1.8-million ? and doesn't have to put a dollar down"
http://www.sptimes.com/2006/06/11/Ta...__she_s_.shtml

ill be reading th is tonight

nicee

heh that woulda been funny in about 2001 when the US$ was still worth something ;)

This was all done without an actual credit check, kind of a useless article.

I want a million too

I just loaded up my bank website, plugged in some fictional figures...

Single
$AUD 40,000 before tax income (the average AU wage)
$AUD 2,000 credit card limit
$AUD 500 monthly car repayment

The bank will lend this person $AUD300k, which means the loan repayments on an interest only loan @7% will cost $21k... more than half of their GROSS income! If it's a 30 year principal and interest loan then the repayments rise to $23k for the year.

So it ends up being like this...

$40,000 gross income
- $7,860 income tax
- $6,000 car repayments
- $23,000 home loan repayments

Guess what's left? $3140. For an entire year. Fucking crazy. How can a bank even reasonably expect this person to be able to service a loan.

Mr. Thread Killer strikes again... whenever I post it's guaranteed to stall the thread. :1orglaugh

BTW $AUD3140 equals about $USD4200

you obviously dont follow the currency market...they are pretty close now

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damn youre annoying.