Post: #26

(10-27-2012 02:54 PM)BIGINJAPAN Wrote:  What makes it works is the privacy laws, banks cannot communicate with each other about a persons account information.

They very clearly can do just this very thing. In fact most agreements you sign with the banks even have cross default provisions where if you default on one loan you will be in default on another.

The banks even built an entire industry around talking to each other about your accounts. They tell each other exactly how much you owe them, when you pay and when you don't pay and they tell each other that information every single month.

Either you are full of shit 100% or you have absolutely no idea what you are talking about.

Post: #27

(11-01-2012 08:44 AM)reaper23 Wrote:  

(10-27-2012 02:54 PM)BIGINJAPAN Wrote:  What makes it works is the privacy laws, banks cannot communicate with each other about a persons account information.

They very clearly can do just this very thing. In fact most agreements you sign with the banks even have cross default provisions where if you default on one loan you will be in default on another.

The banks even built an entire industry around talking to each other about your accounts. They tell each other exactly how much you owe them, when you pay and when you don't pay and they tell each other that information every single month.

Either you are full of shit 100% or you have absolutely no idea what you are talking about.

I'm not sure if you are aware or not but in different countries from your own, there are different laws and legislation.
If he is full of shit then why would he waste time typing so much info on the subject?
Easy with the trolling bud.

Post: #28

(10-27-2012 02:54 PM)BIGINJAPAN Wrote:  So I wanted to write a little bit about how to get ahead in life and screw banks at the sametime. All my friends know how much I hate banks, I believe they are the cause of all evil on this planet and responsible for almost all social disparities in everyone's countries. If a bank was blown up in my city, it is almost certain I would get a visit from the police, as almost any person who has had contact with me knows how I feel about them.

But the one good thing about them is they are greedy as fuck and you can use this to your advantage. Most people have probably heard the bank wants to loan you money, but most people fuck this up because they talk to much. It really isn't the bank declining you, its you sticking your foot in your mouth.

If you have a problem with bending the rules then this post is not for you. I know a lot of techniques to get around any conditions a bank might ask you in order to get a loan or mortgage. I prefer to go the mortgage route as the liability isn't as risky as compared to a personal line of credit. Some of things I will talk about are pretty much outright fraud, but because of the Canadian legal system and banking laws, you will be left untouched if shit ever hit the fan. Alot of these tricks I have learned come from billionaires and multi millionaires. Although they do outright fraud and should be prosecuted because they are harming innocent people and not just gigantic banks.

I should mention this is geared towards Canada. Although I have no doubt the same techniques can be applied to the US, UK, Austrailia and so on. What makes it works is the privacy laws, banks cannot communicate with each other about a persons account information.

I have also mentioned in other threads about how it is possible to not only get a bank to finance a 100% of the mortgage but they will also finance even higher and that will leave you with cash in your pocket.

So where to start. First you need a property. So you go out and find yourself a great deal. One that is under market value, although some banks are so dumb you could get one at market value and inflate the value higher. Always best to look in booming neighborhoods that have a wide value of homes. So for example there are plenty of neighborhoods in Canada where a price range can be between $300k-900k. A lot of banks use an internal system based on postal codes, so they just type the code in and look for the average value. If you are good at this you can send properties in and they will never trigger an actual appraisal if you don't push the envelope too far. The big mortgage insurer in Canada called CMHC uses a similar system called EMILI. That one is even worse for skewing the property values. Unless of course you get a smoking deal on a property and then an actual appraiser coming out to look at the property is not big deal.

So let's say you find a house for $200k but it is worth 300k. Well you and the owner sign a contract up for you to purchase the house for 200k. You then sign a second contract that states you are buying the property for 300k, this contract is the one the bank sees. Now you can go about it 2 ways in Canada, you can get a high ratio loan where the bank will finance you 95% of the purchase price and the loan is insured by CMHC or you can get what is called a conventional loan where the bank will provide you with 80% of the purchase price. Both have + and -. I will get into that a little later on as it has a major impact on what you do with the property, your FICO score and liability if there was a foreclosure. Lets just say you go the high ratio route and get 95% financing. So that means the bank will give you 95% of 300k which works out to $285k. With the bank funding 285k and you actually purchasing the property for 200k, you just made yourself 85k in cash. If you go the conventional route you get 80% of 300k which works out to 240k so you would net 40k.

Now there is still plenty of other things I need to post about this, such as the +s and -s of high ratio vs conventional, how to deal with the lawyers and making sure you get your cash. Also qualifying for the loan. Some of you might not have high enough paying jobs or money in your account to qualify for a mortgage. But that can all be changed with a little know how. Also I will talk about what to do with the properties after and how to do this with more than one place with different banks and the different mortgage insurers. I will also talk about how to get 100% return back on GST paid on new properties. I am sure plenty of you paid GST on a new house and didn't even think of filing with the Canada Revenue Agency to get it all back. That can be a lot of money. If you bought a $500k house that would be a 25k cheque back to you.

I will try and add a new segment everyday for the next 5 days or so to map this all out. It is a great way to get ahead and fund other ventures, build businesses and of course have some fun as well. Best part is it is at the expense of the big evil banks.

Expand on bold please

Post: #29

@Are you seriously doing this ?
What Systems do you have in Place in order to protect you when sommething goes wrong ? Do you do that using you're own Name ore do you have a Trust ore LLC which you use to do this ?

To me this looks kind of Risiky and not realy stress free I know the Banks don't give a Fuck about you and create Money out of thin Aire, but there are other way's to leverage that.

1. Buy a House Undervalued and Casflow Positive
2.use it ase a Security to borrow Money from the banks
3.Use that Money to buy more Real Estate ore use it to generate an Income true other Assets, Stock Market..if you have the skills to do it.

Maybe I am not realy getting what you are saying but I think there are much simpeler way's to make Money without hanging out in the Grey ereas.

Post: #30

(11-01-2012 11:37 AM)Kdog Wrote:  

(11-01-2012 08:44 AM)reaper23 Wrote:  

(10-27-2012 02:54 PM)BIGINJAPAN Wrote:  What makes it works is the privacy laws, banks cannot communicate with each other about a persons account information.

They very clearly can do just this very thing. In fact most agreements you sign with the banks even have cross default provisions where if you default on one loan you will be in default on another.

The banks even built an entire industry around talking to each other about your accounts. They tell each other exactly how much you owe them, when you pay and when you don't pay and they tell each other that information every single month.

Either you are full of shit 100% or you have absolutely no idea what you are talking about.

I'm not sure if you are aware or not but in different countries from your own, there are different laws and legislation.
If he is full of shit then why would he waste time typing so much info on the subject?
Easy with the trolling bud.

Why does anyone troll. He seems to have no idea about credit agencies.

Also banks loan on the lower of the sales price or their stipulated LTV with minor carve outs for up to 3 points back. All. Of. Them.


I

Post: #31

(11-01-2012 04:07 PM)reaper23 Wrote:  

(11-01-2012 11:37 AM)Kdog Wrote:  

(11-01-2012 08:44 AM)reaper23 Wrote:  

(10-27-2012 02:54 PM)BIGINJAPAN Wrote:  What makes it works is the privacy laws, banks cannot communicate with each other about a persons account information.

They very clearly can do just this very thing. In fact most agreements you sign with the banks even have cross default provisions where if you default on one loan you will be in default on another.

The banks even built an entire industry around talking to each other about your accounts. They tell each other exactly how much you owe them, when you pay and when you don't pay and they tell each other that information every single month.

Either you are full of shit 100% or you have absolutely no idea what you are talking about.

I'm not sure if you are aware or not but in different countries from your own, there are different laws and legislation.
If he is full of shit then why would he waste time typing so much info on the subject?
Easy with the trolling bud.

Why does anyone troll. He seems to have no idea about credit agencies.

Also banks loan on the lower of the sales price or their stipulated LTV with minor carve outs for up to 3 points back. All. Of. Them.


I

All your comments are so off based I would be surprised if you worked in real estate like you claim.

I don't even know where to begin. Re-read what I wrote about how to get around to the higher value.

As for credit agencies, most banks do not report mortgage on your bureau. The insured ones sometimes show up, but not always. But the insurers keep track of your properties so they don't need to report them. Also if you default on a conventional mortgage, not only will nothing happen to you, it doesn't even show up on your credit profile. Again somebody in real estate would know this.

As for banks and privacy laws. Banks cannot disclose how much money you have in your account to anybody. Only the government can demand that information. Or court order. So for example I bank with TD, if I get a mortgage with BMO and I tell them I have $200,000 in my account they have no way of verifying with the bank. They will ask to see my bank statements, which I am happy to provide. But they cannot call up the other bank and ask for copies or even ask how much is in my account. Most people again would know this.

If you ever bought a house in Canada you would know the lender requests you bring in your bank statements. If they do as you claim (which you are so wrong ) then why would they want you to bring your documents in when they can just call the bank up themselves ?

My logic clearly makes sense and you are the one trolling. You are talking about something you clearly no nothing about.

Any canadian homebuyers on this site will tell you they provided their own documents. No verification by the bank to other bank.

Post: #32

(10-31-2012 11:36 PM)malc Wrote:  It's because of Canada's weaker money laundering / real estate laws compared to the USA vancouver is a big unaffordable mess. It's a favorite spot for mainland chinese to launder their money with real estate.

Vancouver is a haven for chinese activity. But the biggest money laundering network on the planet is the NAR or NRA. Whatever your real estate association is in the US. People are coming in and buying 10 million homes to 100 million homes in cash. Nothing like that is happening hear. They have FINTRAC forms filled out by realtors here that require at least where the downpayment is coming from.

The NAR is the only reason the high end property market hasn't collpased in the US. All the drug dealers and oligarchs looking to hide money from their respective goverments come to the US and buy property with cash because the government looks the other way

Post: #33

banks do 100% report mortgages on your credit report. i am looking at mine right now and it even has mortgages from the past, years ago, that were closed and paid off already.

banks do NOT loan on the HIGHER of the sales price or appraised value.

the entire premise of your pitch is flawed.

why in the world would a bank loan you $300k to buy a house for which you have a contract for $200k?

It just simply doesn't happen. The most basic underwriting requirements are that the loan is for the LOWER of the stipulated LTV or the sales price.

So if your purchase price happens to be $800k on a $1MM house, you aren't getting $1MM you're getting a % of 800K, at most around 95% if you want to pay extra mortgage insurance.

The things you write about sound like the late night real estate investment scams and info from people trying to sell you info.

Like all things in life, if it sounds too good it is too good.

Why don't you throw up some real numbers to make your case?

Give a hard example.

Show actual purchase price, the mortgage terms obtained, what the PITI would be for that property, then show expenses and other carry costs and then what the gross rental income would be minus vacancy and taxes...

Use real world examples.

Show us how you find properties that are selling for $200k when they are really worth $300k and you have a bank that you will loan you $300k to buy a house that is only $200k sales price as stipulated by the contract you are submitting with your loan application.

I have bought, sold, managed, built and developed over 50 properties ranging from raw undeveloped land, to single family homes to multi unit apartments and condos, to commercial buildings and mixed use developments with budgets spanning $50,000 to $500,000,000 (yes five hundred million dollars). I have obtained all kinds of real estate financing from single family owner occupied to single family investment properties to multi unit deals from HUD to construction and development loans and long term commercial financing placed in commercial mortgage backed securities.

I have been at times a broker, developer, builder and manager.

I own a multimillion dollar real estate portfolio.

I have gone bankrupt and came back all the way better than before.

I have owned architecture firms, construction firms, development companies and brokerages.

My credentials are backed up with real world success.

Now, show us your real world examples or GTFO with this nonsense.

I say all of this to protect my fellow RVF'ers and to protect the integrity of the forum's information.

Post: #34

"So let's say you find a house for $200k but it is worth 300k. Well you and the owner sign a contract up for you to purchase the house for 200k. You then sign a second contract that states you are buying the property for 300k, this contract is the one the bank sees."

All at the same time in your pitch you propose the following:

1) contract fraud
2) bank fraud
3) wire fraud
4) finding a dupe dumb enough to sign a sales contract with you for $300k, when he just signed a deal with you for $200k. you think that guy is going to cooperate!? Hey man, I know I just told you that $200k is a great price for your property, but ACTUALLY! the property is $300k! And not only did I just fuck you out of $100k worth of equity, but I want you to cooperate with me in committing bank fraud so that I can get rich and you get fucked! How about it Seller??

My work is done here.

Listen to this nonsense at your own risk.

Post: #35

Contacted a friend in canada, his mortgages do show up on his credit report. He has no problems paying his mortgages and has a good credit rating. Bank accounts do not show up.

Post: #36

Some mortgages will show up on your bureau. Most won't. I have had 10 properties under my name personally at one time. I would not have been able to do that if they reported them. Currently I hold 4 under my name. I just worked on someones file this week that wanted to buy a house because of the land value and development potential. She has 4 properties in her name. We did a conventional loan and got her approved in one day at National Bank. I will even ask her if I can post her blacked out bureau on here. You can all take a look for yourselves and you will see.

A lot of banks don't report lines of credit either if it is a home equity loan. Sometimes instead of getting a mortgage I will get a HELOC. Which again will not show up on my bureau and allows me to go get other properties.

Post: #37

(11-02-2012 08:45 AM)reaper23 Wrote:  banks do 100% report mortgages on your credit report. i am looking at mine right now and it even has mortgages from the past, years ago, that were closed and paid off already.

banks do NOT loan on the HIGHER of the sales price or appraised value.

the entire premise of your pitch is flawed.

why in the world would a bank loan you $300k to buy a house for which you have a contract for $200k?

It just simply doesn't happen. The most basic underwriting requirements are that the loan is for the LOWER of the stipulated LTV or the sales price.

So if your purchase price happens to be $800k on a $1MM house, you aren't getting $1MM you're getting a % of 800K, at most around 95% if you want to pay extra mortgage insurance.

The things you write about sound like the late night real estate investment scams and info from people trying to sell you info.

Like all things in life, if it sounds too good it is too good.

Why don't you throw up some real numbers to make your case?

Give a hard example.

Show actual purchase price, the mortgage terms obtained, what the PITI would be for that property, then show expenses and other carry costs and then what the gross rental income would be minus vacancy and taxes...

Use real world examples.

Show us how you find properties that are selling for $200k when they are really worth $300k and you have a bank that you will loan you $300k to buy a house that is only $200k sales price as stipulated by the contract you are submitting with your loan application.

I have bought, sold, managed, built and developed over 50 properties ranging from raw undeveloped land, to single family homes to multi unit apartments and condos, to commercial buildings and mixed use developments with budgets spanning $50,000 to $500,000,000 (yes five hundred million dollars). I have obtained all kinds of real estate financing from single family owner occupied to single family investment properties to multi unit deals from HUD to construction and development loans and long term commercial financing placed in commercial mortgage backed securities.

I have been at times a broker, developer, builder and manager.

I own a multimillion dollar real estate portfolio.

I have gone bankrupt and came back all the way better than before.

I have owned architecture firms, construction firms, development companies and brokerages.

My credentials are backed up with real world success.

Now, show us your real world examples or GTFO with this nonsense.

I say all of this to protect my fellow RVF'ers and to protect the integrity of the forum's information.

What I am talking about is not a get rich scheme over night. This still takes a few years to develop and build a portfolio. I own a multi milion dollar portfolio with my own real money that I built by the time I was 26-27. Just like a lot of other guys, a multi million dollar portfolio isn't that impressive. Anybody who has been in real estate over a year will figure that out very quickly.

I am going to work on a new deal for someone this weekend. I will give a play by play of exactly what happens. I will even post documents to back up my claims.

You can keep yelling fraud all you want and display some higher moral value. But the fact is there are no laws about this and we are exploiting a system created by the banks.

Post: #38

You can keep telling yourself that banks don't lend on a higher amount, but they do. They use automative systems 95% of the time and they go with what the computer tells them. If you agree to buy a house from an owner at 200k and tell the bank you are buying the house for 300k and the value of the home is 300k then the bank will lend on that. If you sign a contract stating you are buying it for 300k and show the bank that is not contract fraud. If you sign another contract with the owner for 200k you are essentially splitting the profit on the house. Again that is not fraud. People can sign more than one contract and enter into all kinds of agreements. It isn't fraud at all. I can see you might be upset because you did things a harder way and it took longer to get where you are. But just like everything else in life people come along and find a better way of doing things.

And maybe the US has tightened things up over the past few years. I have broker friends in San Diego and they used to do this during the boom. I emailed one of them to ask about the changes. But in Canada this is how it works.

Post: #39

(11-02-2012 01:57 PM)BIGINJAPAN Wrote:  If you agree to buy a house from an owner at 200k and tell the bank you are buying the house for 300k and the value of the home is 300k then the bank will lend on that. If you sign a contract stating you are buying it for 300k and show the bank that is not contract fraud.

Submitting false information to a lender for the purposes of obtaining a loan is fraud.

Post: #40

(11-02-2012 01:57 PM)BIGINJAPAN Wrote:  You can keep telling yourself that banks don't lend on a higher amount, but they do. They use automative systems 95% of the time and they go with what the computer tells them. If you agree to buy a house from an owner at 200k and tell the bank you are buying the house for 300k and the value of the home is 300k then the bank will lend on that. If you sign a contract stating you are buying it for 300k and show the bank that is not contract fraud. If you sign another contract with the owner for 200k you are essentially splitting the profit on the house. Again that is not fraud. People can sign more than one contract and enter into all kinds of agreements. It isn't fraud at all. I can see you might be upset because you did things a harder way and it took longer to get where you are. But just like everything else in life people come along and find a better way of doing things.

And maybe the US has tightened things up over the past few years. I have broker friends in San Diego and they used to do this during the boom. I emailed one of them to ask about the changes. But in Canada this is how it works.

what Seller says to you that he is going to help you defraud a bank after you just fucked him out of fair market value?

I rolled up Zero of my own money to 7 digit equity, not overall value. I made infinite return and now my financial future is secured in stable cash flow generating properties with high grade tenants. and I have no fear of the banks or angry sellers coming after me...

or am I dealing in fraud. Or the "grey area" as you called it.



yes during the Boom dumb shit was being done by brokers and lenders all over the place..that dumb shit is now being prosecuted as fraud.

This is from WIKIPEDIA which as we all know is about the dumbest most simplistic source of data on the internet and this what they have to say:

"The valuation of a property is typically determined by an appraiser, but there is no greater measure of the actual real value of one property than an arms-length transaction between a willing buyer and a willing seller. Typically, banks will utilize the lesser of the appraised value and purchase price if the purchase is "recent." What constitutes recent varies by institution but is generally between 1–2 years."

emphasis mine.

here is the link:

http://en.wikipedia.org/wiki/Loan-to-value_ratio

What I am talking about is common knowledge.

What you are talking about is either illegal, a straight fuck up, bullshit, or all three.

Post: #41

I don't want to interject myself too much in this debate given that I admittedly know little about real estate. With that said:

(11-02-2012 08:48 AM)reaper23 Wrote:  All at the same time in your pitch you propose the following:

1) contract fraud
2) bank fraud
3) wire fraud

Firstly, OP has already admitted as much in his opening post:

Quote:"...Some of things I will talk about are pretty much outright fraud, but because of the Canadian legal system and banking laws, you will be left untouched if shit ever hit the fan. Alot of these tricks I have learned come from billionaires and multi millionaires. Although they do outright fraud and should be prosecuted because they are harming innocent people and not just gigantic banks."

So everyone should know by now that this is at best a grey area and that it isn't for the faint of heart.

Secondly, your profile states that you're from the USA. I don't doubt that what you say is true for your own country, but are you SURE what you say applies to Canada as well? You still haven't made that clear.

Quote:4) finding a dupe dumb enough to sign a sales contract with you for $300k, when he just signed a deal with you for $200k. you think that guy is going to cooperate!? Hey man, I know I just told you that $200k is a great price for your property, but ACTUALLY! the property is $300k! And not only did I just fuck you out of $100k worth of equity, but I want you to cooperate with me in committing bank fraud so that I can get rich and you get fucked! How about it Seller??

I wouldn't use such accusatory language, but this is a valid question, one I'm hoping/guessing BIGINJAPAN is going to address step-by-step in an upcoming post. How do you get the seller to agree to this arrangement? That is, in this example, the seller and the buyer obviously have to agree to the 200k deal, but does the seller have any part to play in the buyer's 300k agreement with the bank? If yes, then how do you overcome that hurdle?

Post: #42

How is it submitting false info ? If the property will appraise for 300k based on the banks own system where is the fraud or crime ?

I am not breaking into the bank and recaliberating their own system for property appraisal. I think you have a hard time wrapping your head around this. The values of the homes I am talking about are based solely on the bank. I'm not making a number out of thin air and then somehow manipulating the bank into accepting it. They are doing their own due diligence. I am not sure why this is so hard for you to believe ?

Also for the record I am talking about a multi million dollar portfolio based on my equity. Not the value of the properties.

And I am not fucking any seller out of anything. This is something they agreed to and signed a contract. I have never held a gun to someones head in order for them to sell me a property. Again you need to open your eyes and expand your very narrow view of how things work, or how you think they should work.

Keep trolling and calling this fraud, bullshit or I am lying. My next post I will explain how to do all the lawyer work and the transfers as well. Which will all be straight up legal and within the banks guidelines.

Why don't you start your own thread on how to build a multi million dollar real estate portfolio ? Or one on how to come back from being bankrupt ? Contribute something to this forum instead of your completely inaccurate assertations.

Post: #43

(11-01-2012 03:54 PM)SelfPaid Wrote:  @Are you seriously doing this ?
What Systems do you have in Place in order to protect you when sommething goes wrong ? Do you do that using you're own Name ore do you have a Trust ore LLC which you use to do this ?

To me this looks kind of Risiky and not realy stress free I know the Banks don't give a Fuck about you and create Money out of thin Aire, but there are other way's to leverage that.

1. Buy a House Undervalued and Casflow Positive
2.use it ase a Security to borrow Money from the banks
3.Use that Money to buy more Real Estate ore use it to generate an Income true other Assets, Stock Market..if you have the skills to do it.

Maybe I am not realy getting what you are saying but I think there are much simpeler way's to make Money without hanging out in the Grey ereas.

If I am keep the property I eventually move it off my name and put it into my real estate holding company. Which is an incorporated company. You can do provinicial corps or national ones in Canada. I use a national incorporation because I have properties across Canada.

So your first point is what I do. But now instead of tying up my own money in the transaction I find a property that even leveraged to the nuts it will still cashflow. They are out there and you just have to look for them. Like I said in an earlier post I bought a massive bungalow with 3 suites in it and a 3 car garage. I rent the suites and the garage out separately. Even with it being mortgaged right up to full value I still clear around $1200 a month. The bonus being it didn't cost me any of my own money to gain that $1200 a month in net cash flow.

2. A lot of my properties I bought years ago and still hold have a lot of equity in them due to the boom and also because of how I structured the mortgages. I then switched them into lines of credit instead of a mortgage and I can tap those whenever needed. Years ago I used them to buy a shitload of gold and silver. I keep them as back up now if something ever happened. But that is another great way to come up with downpayments to buy other rental properties.

Basically the premise of this thread is to build income producing assets with no money and/or to create working capital to fund other ventures or more real estate purchases.

Post: #44

BiginJapan,
Read this http://www.sovereignman.com/expat/practi...line-9386/ ... know anything about international mortgages?

I know some US banks will put out mortgages on foreign properties. Doubt these Hong Kong banks would put out mortgages for properties in the DR/Panama/Costa Rica, but if they did, I'd load up with as many interest-only ones as possible.

Post: #45

This is fraud, plain in simple.

But I've never met a criminal who wasn't smarter than every federal agent and lawyer out there - in his own mind, anyway.

Post: #46

Although what Big Japan is advocating is straight out forgery(photoshopping pay stubs, statements and shit) His advice on analyzing mutli family properties and renting furnished apartments is spot on.

Please to all Newie RE in training tycoons out there reading this DO NOT submit forged documents to a bank during a Mortage application in the US. At a minimum your credit file is going to be flagged for fraud and good luck tying to get even a $200 TV on credit from Rent-a-Center. And there's a very strong possibility you are going to be arrested.

With the Patriot Act reporting requirements and the consolidation of public information databases every single piece of information that you can possibly submit to a bank they can verify. Submit a W2, they going to call your employer to verify and request a transcript directly from the IRS to verify. You are self employed? LOL. Good luck. The scrutiny you will go under is insane.

As for using "straw buyers" for mortgages that's next to impossible today because of stricter underwriting guidelines. Back in the days all you needed somebody with a heartbeat and they could get a mortgage. Now You will need to find buyers with good to excellent credit, long credit history, good savings, decent income and very low debt. People who have above qualifications understand credit will not go along for a scheme like this because of the legal ramifications of you screwing them over.

I am afraid without having inside information and a hook up, the days of loopholes and shortcuts in RE for the common man is over. If you are going for a FHA loan you need 6% (3.5% down and the rest for closing cost) of the purchased price in your bank account 3 months before the Mortage application. Also, you can only have 1 outstanding FHA Mortage at a time so any properties after your 1st one, its going to have to be conventional I.e. 20% down and higher interest rate. But wait, there's more... Fannie Mae requires that you have been a landlord for two years before they even let you apply for an investment property Mortage(with schedule D's to back it up) and they have a cap of 4 properties.

Therefore, make your first property count. Look for first time Home Buyers programs in your home state. Make sure that the mortgage that the program is using isn't FHA Mortgage. Get a 4 family and live in one of the units while you stack your paper. If you picked the right properly you should have your entire monthly nut paid plus your living expenses. Plus you'll get a nice tax refund because of all the deductions(75% of all your expenses going to be tax deductible plus depreciation)In about a year or so when you have saved 6% down apply for a FHA mortgage and get your second 4 family or mixed used property ( store front with apartments above). Keep stacking your paper and in two years get a conventional investment property mortgage and you can repeat the process every two years until you hit your 4 property cap. You should have 6 properties in a 10 year period.

Sure 10 years is a long time, but answer me this. What were you doing 10 years ago?

Post: #47

Keep the posts coming BIJ, idk if this is or isn't legal in Canada but most of my family are bankers so once I get some info on how you tackle the paperwork I'll find out. Still very much interested and following

Post: #48

(11-02-2012 04:40 PM)Big Nilla Wrote:  BiginJapan,
Read this http://www.sovereignman.com/expat/practi...line-9386/ ... know anything about international mortgages?

I know some US banks will put out mortgages on foreign properties. Doubt these Hong Kong banks would put out mortgages for properties in the DR/Panama/Costa Rica, but if they did, I'd load up with as many interest-only ones as possible.

Banks like Scotiabank specialize in Central America mortgages. They have a heavy presence down there. Don't quote me on this but I am certain they require a minimum downpayment of 25% from foreigners, including Canadians. While other banks will require around 50% downpayment. IF you are Canadian, we have a pretty cozy relationship with Turks and Caicos. Very easy to move down there and move money as well. Although I suspect also very easy for the Canadian government to find it. If I moved money there using a canadian bank I would be sure to then walk it across the street to an actual branch based in T and C.

HSBC is gigantic global bank and based out of England. They might not loan on Central America properties but I bet they would on places they still control ie. Virgin Islands. They might even lend on properties in former colonies like Argentina. Or like most European banks they might tell you to go fuck yourself if you are American. All the big european banks have been rejecting US citizens as clients for 4 years now. HSBC is in hot water again this weekend with the US government. They just got caught a month ago laundering huge amounts of Mexican Cartel money and now they just got caught again. So they might not be the biggest fans of americans.

Post: #49

(11-02-2012 05:20 PM)MikeCF Wrote:  This is fraud, plain in simple.

But I've never met a criminal who wasn't smarter than every federal agent and lawyer out there - in his own mind, anyway.

What part is fraud exactly ?

Post: #50

(11-04-2012 03:07 PM)BIGINJAPAN Wrote:  

(11-02-2012 05:20 PM)MikeCF Wrote:  This is fraud, plain in simple.

But I've never met a criminal who wasn't smarter than every federal agent and lawyer out there - in his own mind, anyway.

What part is fraud exactly ?

among other parts:

"Sometimes different paperwork is required and I have to pay some photoshop experts. Because I am basically retired and don't have traditional income from a job or commission cheques I have my own made up. I will go so far to recreate job letter, paycheques, bank statements, notice of assessments, basically whatever the bank wants to see. That can cost me another 2000 or up to 5000 if I am financing the purchase of a company or a big project."


Are you even serious trying to act like this isn't fraud?

You even said it was fraud.

Why the front?

Why are we even discussing this?

Hey guys, I've got a great idea for a way to make money! You just go up to people and smash them in face and take their shit! It works! You won't even get arrested all that often because if you can run fast you'll get away!