You Don’t Need to Put 20% Down on Your Rental Properties… Do This Instead!
You Don’t Need to Put 20% Down on Your Rental Properties… Do This Instead!
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The speaker advises against putting a 20% down payment on a rental property because banks only care about their loan being a safe investment, which means a loan-to-value ratio of 80%. This means that if the property is worth $100,000, the bank will only loan $80,000. The speaker suggests achieving this safe position by either buying the equity with a 20% down payment in cash or creating equity by buying at discounts or improving the property. The speaker encourages listeners to get creative in creating equity and promises to provide tips on how to do so.
The speaker advises against putting a 20% down payment on a rental property because banks only care