I was speaking with a friend of a friend, who told me him and his family have accumulated over 10 properties, all of which were acquired with false paperwork through a broker.

Another friend knows a broker that shared that it’s very common to falsify documents to get their clients a mortgage, for a fee of course. They have been doing this for 15+ years with no problems.

A third family my friend knows own around 8 properties, all of which are mortgaged.

This got me thinking how many others are doing this? The sad reality is that they’ve been doing this for many years and have build 100s of thousands, if not millions, of equity doing it.

They also Airbnb these properties which are cash flows positive, so they have 8-10 properties which cover their mortgage and then some.

Even if interest rates rise, they can still cover the mortgages with the cash flow from the properties. Even if properties fall by 10-20%, they’ve built enough equity to cover it.

How are people getting away with this? This definitely contributes to the housing crises and sky high prices for real estate. It boggles me.