Tammy achieves his financial freedom through property investment. Recently he bought over a property that looks too good to be true.
Purchase Price : $4 millionsBank Loan : 100%Loan Rate : 6%Monthly Rental : $30,000
The property is sold at $ 3.8 millions but he lumps all the other fees in to make it $4 millions as his total cost. His net asset is way more than $4 millions so there is no problem to obtain that amount of bank loan. Loan interest is actually 5.XX but we round it up to 6% for this article. There are only 3 tenants, all are national and listed companies.
His monthly repayment is $23,982, fully paid by collected $30,000 rental, with a net cash flow of $6,018 every month. He didn't fork a single cent out because his bank is fully behind him in his deal.
Lucky him, just another rich guy gets richer, it has nothing to do with me, you may think ?
Well, every story is a lesson to someone. Its just a matter of what you get out of it. This opportunity did not just knock on his door and call it a deal with no reason.
It started around mid last year when the seller approached Tammy. Tammy made an offer but seller thought he had a better buyer and didn't take it. Then by last year end, seller took Tammy's offer but Tammy's offer has already expired. And Tammy met other better sellers. After beating around bushes and some silences, finally the deal is made this mid year. The whole process took around a year.
Can you imagine an opportunity of $6,000 net cash flow floating around in the market for one whole year and no one grab it like a crazy dog ? Well, that is the fact of life.
- Many people want to buy it but not all of them have 4 millions
- Many people do not qualify for a 4 millions loan
- Some people CAN buy this but this may NOT be their only choice
- Some people WANT to take this kind of opportunity but NEVER found this particular one!
- Both seller and buyer may have personal preferences ... etc.
Yes the 1st two points may rule out almost 90% of the people, the Rich does get Richer easier. But that is because they have built their fortune faster and ahead of others. Not because it was taken for granted.
Don't forget this mentioned opportunity has been floating around publicly for one whole year, you and I didn't really know it until the deal was done. So it wasn't a matter of how rich other people are, its a matter of what you have done so that you can get what you really want.
Yes, again this is in Australia.
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