Wednesday, April 9, 2008

Tips on minimize risk when financing in real estate

Raising money is one of the most crucial elements in real estate investment. It is good if we have available money to be invested. But, it is a nice investment when you can use other people money to work for you. Here are some tips for you to attract lenders to give you loan, so you can minimize the risk when financing in real estate: 1) Make lenders want to do business with you. If you have a good credit record, banks will be willing to loan you money. So, remember this trick, “bank will lend you money when you don’t necessarily need it”. 2) Borrow as much as you can, for as long as you can. The key of a successful investment strategy is to have extra money on hand, because when there is an available opportunity that you know will be a good investment, you can concentrate this idle money there. 3) Borrow from a lender with whom you already have a relationship with. It means that you need to develop a working relationship with one or more commercial lender if you have a sincere interest to be in this real estate business, and, maintain that relationship. 4) Don’t sweat the details. It means that every lender -for example a bank- have their own ways in doing business. You have to accept their agreement, including interest rates, terms of payment, rights of payment, and maturity dates. Don’t be scared with them.

The last one is 5) you have to manage all of your loans in a good way. Sometimes people don’t realize that credit loan, or credit card is just temporary money they can have. They just think that of those credits are facilities given for them. People go to college, graduated, get the most promising job they can have, stayed there while they begin to take a loan or a credit card. They begin to spend all of available limit inside their credits for unnecessary things, like go to the night club, dinner at the best restaurant in town, have a rave party, or buy the latest branded item. Those are the example of the bad credit loans and bad credit credit cards maintenance.


Anonymous said...

Oh hey... what a coincidence, i was struggling with the banks for couple of months... i'm planning to be a small developer of real estate and of course with help from both of my parent.

Thanks for sharing the tips Mr. Andie

ReadYou said...

the hell, in this era we can't live without the loans. Thanks for the tips, I will use it to apply on Trisna's Real Estate.