Rich Dad-Poor Dad - Training Academy

mutley74

Thanks to all for replies.
In the end i did not book for the course, although suprised they did not even call me.
Anyone i really would like to try investing money within property but my biggest hurdle is getting finances...such do i buy a property outright with my cash available or use that to get say a 20% deposit and BTL mortgage.

But one thing i can understand from the Rich Dad info is they say to use Other Peoples Money. They are strong believers in using credit cards and bridging loans to buy a property. When the property is purchased some money can be spent to modernise the property and the remortage it for a higher amount than paid. using the cash to pay the CC and loan, with the surplus as a credit!
Sounds good in principle but how can one use a credit card to buy a property??? any help welcome, thanks

LydiaJ

mutley74 wrote: »

But one thing i can understand from the Rich Dad info is they say to use Other Peoples Money. They are strong believers in using credit cards and bridging loans to buy a property. When the property is purchased some money can be spent to modernise the property and the remortage it for a higher amount than paid. using the cash to pay the CC and loan, with the surplus as a credit!
Sounds good in principle but how can one use a credit card to buy a property??? any help welcome, thanks

How do you intend to remortgage it for a higher amount than paid in today's market?

HAMISH_MCTAVISH

It's a scam.

There is no way to buy property with their ideas that you couldn't figure out for yourself with a few days of internet research.

If you are desperate to get into BTL, find a cheap area with high yields, and manage it yourself.

You can still buy flats/houses for less than 50K in the UK with 10% yields.

Google "The Times BTL hotspots" for ideas of where, or look in many small towns within an hour of big cities in the North of England or Scotland.

If you can't raise the legitimate 35% deposit for a 50K place, you have no business being in BTL.

It will be painful. The areas will suck. You'll have to be a b astard to get your rent. But it can be done and in a few years you'll be able to leverage the first one to buy more, and better, ones in nicer areas.

HAMISH_MCTAVISH

mutley74 wrote: »

But one thing i can understand from the Rich Dad info is they say to use Other Peoples Money. They are strong believers in using credit cards and bridging loans to buy a property.

In the boom you could do that.

Today, you'll need a legit 25% + deposit as remortgaging, or even mortgaging to begin with, is really difficult.

Just save up and buy in a cheap area.

mutley74

HAMISH_MCTAVISH wrote: »

In the boom you could do that.

Today, you'll need a legit 25% + deposit as remortgaging, or even mortgaging to begin with, is really difficult.

Just save up and buy in a cheap area.

Thanks i have saved some cash up, enough to buy in a cheap area. Some low standard housing going cheap near me for around £45k, and better area for around £70k.

But how can one use a credit card to buy property? is it by taking a cash advance? as i thought CC would incurr higher fees by cash advances.....?

Rick62

In the old days you could borrow free money on CCs for 12-18 months. Those days are gone. Also property used to go up, its most probably going to start going down again very soon. In fact, as I'm just buying myself a (very overpriced) house I can guarantee that prices will be going down!

adg1

mutley74 wrote: »

But one thing i can understand from the Rich Dad info is they say to use Other Peoples Money. They are strong believers in using credit cards and bridging loans to buy a property.

They are assuming (and hoping) that any work you do to a property increases its value by enough to cover the credit card DEBT and bridging loan DEBT so you can pay them back, then reinvest the little left in another one, do the same and over time you get enough money back be more comfortable.

Great if the market rises and you have a 99% chance that any work you do increases the property's value, but bad if the mortgage lender doesn't increase their valuation and you are left with a bridging loan, credit card debt and a house that isn't worth any more than wneh you bought it even though you have spent money on it.