Tuesday, September 22, 2009

Buy A House Without Money

Seems like I didnt drop by for a year already ... well ... it's because I m too busy reorganize my travel agent business and prepare it for Auto Pilot System, which is not easy at all.

Recently my company just bought an office with NO MONEY AT ALL.Well, if you said it's impossible, I'll tell you how I did it.

4 months ago, I joined an investment seminar that taught us how to buy house with NO MONEY AT ALL, and in return you still get CASH BACK and you don't have to pay the monthly installments using your OWN MONEY.

Well, after joining that seminar, I hunted for houses for almost 3 months, and after I got so desperated and going to give up soon, I saw one classified ads which showed there is an office for sale which sold for extremely low price, while the location of the property is located in prime area, which thousands of cars have to cross that particular location everyday.

I visited the property directly and found out that it's a quite old property (1980's) which need a massive renovation. After that I went back and talked to my shareholders regarding it, and we finally to buy the house at IDR 650 milllion. After some negotiation, we are agree at IDR 660 million. The closing cost of the property is about IDR 40 Million, and guess what, bank gives us IDR 700 million. This made us buying the property without using our money at all.

Well, there are some minor mistakes during the process. The market price of the property within that area is about IDR 1 billion, in which bank will mortgage it for 80% of the market price value, which mean bank will give us loan about IDR 800 million, giving us some cash back to do some renovation. But the fact is we had not enough time to find perfect bank that willing to give us such loan.

Second mistake is that we should have negotiated with the owner to give us 2 months time to get bank loan for the property instead of one month, which was not enough for us to find the perfect bank.

Well, for the monthly installments, we planned to renovate the 2nd floor tp 4th floor to become an exclusive boarding house, which we have calculated that it could cover the monthly installments.

If everything is go on as planned, the cashflow from the boarding house will cover the monthly installments, and we can use the 1st floor to become our travel agent office without have to worry about the rental fee at all.

The experience I went through with my first NO MONEY NEEDED property is quite worth it, beside the fact that I still have to learn more about the technique and negotation skill to find further NO MONEY NEEDED property.

IF I CAN DO IT, WHY CAN'T YOU ?

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