Updated over 5 years ago on . Most recent reply
Memphis in Dubai
Hello BP. I'm a native Memphian, currently living and working in Dubai. I'll be home for the holidays, and I want to invest in 2-4 door multi families or a couple of single families. I want to pay cash. I fully understand the power of leverage, and in the future I intend to do just that, but I know that no bank is going to approve a loan for me because I live and work in abroad. Because of this, I won't be able to produce many of the documents that they will require. Those documents and that concept just do not exist here.
My plan is to buy the properties outright, sit on them while renting them out for a year, and next year I'll go to the bank for a loan using the equity in the properties that I purchase this year as collateral. I'm in no hurry, and as a relative new comer to real-estate investing, I'd rather play it safe and learn on my own dime than potentially have to learn a hard lesson while owing a mortgage. If this is a terrible idea, please feel free to tell me so.
I have also set up an LLC under which I will title the property (hopefully the first of many). My target is B- to C- properties, and my budget is roughly $200k. I'll buy in December of the year. If I need a reality check, please feel free to offer one, and if you have any input that will help me in my quest, please feel free to offer that as well.
I'm looking forward to the feedback. Thanks all
Most Popular Reply
If you are here in Dubai and starting out with real estate investing and want to learn from likeminded people then I highly suggest you join and participate in The Dubai Cashflow Club on meetup.com. I am the organizer of the group and we often get together on a weekly basis and play the Cashflow 101 game designed by Robert Kiyosaki. It is a great place for you to connect with others in town who are on the same journey to financial independence and growing in their financial literacy. Learning the game and playing often (I recommend weekly) you will have a much better understanding and comfort level with leveraging and using the bank/other people's money.
The rich use debt to get richer and the poor and middle class use debt to get poorer, like a loaded gun it can protect you or kill you. Once you have a really good understanding of how debt works (i.e. knowing Good Debt vs Bad Debt) then you can use it to help yourself rather than harm. Playing it safe has little to do with using your own money and much more to do with how you think and the knowledge you have about investing. Lack of financial literacy will always lead to high risk, your money or not.