LOL @ Piston for his inconspicious digs towards me every day.
and I thought I was paranoid. I also have a picture of you under a pentagram (upside down of course) that i cast spells over lol.
But really I make those comments all the time and if that dig is aimed at sum dude it's probly the one that claims he had 2 dads. If you post sumthin I don't agree with, I answer straight back with not much room for doubt on what I think.
btw What you got there is a good deal in std terms of buying RE.
And it's interesting to see how over the last few years you went from "only paying XXX to own" to "only buy CF+", maybe you are learning
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In reality I agree ozperp, to me borrowed money
is cash, so there's no such thing as "no money down" imo. I see no difference between cash, equity and wealth (as posted previously somewhere). To me Wealth=Equity(you can borrow on)=Cash.
If the asset your purchasing is left unencumbered, and an asset you own is used as security, then what is the the difference in the end result? None.
And btw in my case stamp duty is 0.06% and no LMI
ie Less money used.
The beauty of having available equity (from 4yrs of reducing debt) is the ability to move fast.
Doing it any other way would've been tedious & slow (banks hate complicated), that's not good for biz.
Putting a 500k offer on the table without any regard to what the banks think of deal or the purchased assets is darn good for the biz of buying cheap.
This asset was paying net income of >500K which dropped to <150k (a bit GFC and a bit bad decisions).
But the recipient believed that the boom would last forever and spent up based on an income of >500. You know, economy never stops growing, this time is different, Australia is better, immigrants, gov grants, money thrown outa choppers etc etc.
Just like Citigroup paying billions in bonuses for losing billions, then asking for a bailout.
In this case I'm the "bailout", but unlike a gov. I pay way below market value and nobody but me is left.
As GR would say "it's not a forced sale, it's a kicking & screaming sale" where it got so bad that there was no longer the ability to think & make rational decisions.
So Piston Broke Private Equity bails out the Flying Pig Corp for a fraction of asset values taking all shares and now calmly decides what to keep, sell, fix or borrow on. And in the meantime the income keeps coming in.
Gotta admit I think I took a little inspiration from GR and his crazy bargain buys on this one to look at it from an unconventional angle. Thnx!