RealEstateInvestment.net
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Real Estate Financing Secrets By Michael Setz Financing your investments is a major consideration for all investors. As with anything else, it pays to maintain good relationships with bankers and lenders. It is important to build a solid reputation of trust and reliability. It is also important to be organized. Your Lender is very busy and they will appreciate if you come prepared and organized. The easier your loan is to handle the quicker your loan will probably get processed. Supply all the verification docs and other required documents up front. A list of the more common documents you should anticipate your lender requiring are as follows:
Have these always at the ready and submit them up front along with your application. You can be sure it will make a great impression on your loan officer. There is another grand secret you may not have known, and it is this: Banks want to loan you money! I know that seems absurd, or maybe even obvious, but do not under estimate this fact or the lack of understanding around it. Many people find it hard to understand that banks and lenders are in the business of giving people money. They are in the money business. Their business needs borrowers. You are the borrower they need. They like you. Keep this perspective the next time you walk into a bank and ask for a loan. If they don't respond, go to the next bank, there is no shortage, they are in abundance. By the way, in case you didn't know, banks take your money that you have just deposited and pay you 1% interest, then turn around and loan it to your neighbor to buy real estate at 6%. That's how they really make their money. Did you know that banks are only required to keep 10 percent of all their recorded deposits on hand at any one time. The rest gets loaned out for real estate or secured by real estate. They are also in the business of mitigating risk. Bankers don't like to risk their money, would you? Bankers know that one of the least risk investment vehicles available is in a secured loan, or a loan backed up by some sort of collateral. They like real estate because it is a, ...well,.. a real property. So they like to loan money for real estate loans, because it is secured by the property being financed. You don't pay the loan back, you lose the house. Consider this: How many banks and brokers do you see advertising a loan for stocks, or bonds? How many billboards do you see with a bank saying, "Come on in and we'll loan you money...for stocks!" Now, how many banks and brokers do you see advertising for home loans? When you look around you'll see a lot! Now you know why. Abundance is everywhere, and the same is true for money. Go get your wheelbarrow, or your dump truck and get your share now. Respect your banker and lender, build a relationship of trust with them. When they ask for more and more docs respond cheerfully and quickly. Be organized and always shop around. Your lender is your best friend.
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