All about investment

By: Kalinda Stevenson, PhD

You can always get money to fund a good real estate deal.

If you think about money with a consumer mindset, you might assume that the only way to buy investment property is to buy it with your own money and your own credit. This is based on the belief that money is scarce and you have to pay for your investment by yourself.

Where do consumers go for money? They go to banks. And what happens at the bank? If you are a consumer, the bank will require you to provide a vast amount of personal information. You might feel that you have to beg to get the money. And after providing all of the personal information, it is up to the bank to decide if you are worthy to borrow the money.

If you are a consumer who goes to the bank to borrow money, you have to deal with banks who decide whether or not you deserve to receive money from the bank. At the heart of the matter is the idea that the most important issues are your money and your credit. Many people who want to borrow get the distinct impression that the bank wants to loan money only to people who already have money. If you don't have money, the bank doesn't really want to loan any money to you.

In fact, you don't ever have to ask a bank for money to fund your real estate transactions. This is because there are private lenders who have plenty of money for real estate investments. This is one of the major differences between consumers and investors. Investors know that they can use private investors while consumers think that they must get funding from banks. If the deal makes sense, investors can find all the money they want from private investors.

If you want to buy a property, and you need $10,000 as a down payment, someone with a consumer mindset might say: "The only way I can buy this property is to pay $10,000 as a down payment. But since I don't have $10,000, I can't buy the property." Investors don't think this way. An investor's first thought would be: "Since I don't have $10,000 to buy the property, I'll use other people's money. I know that some one else has the money I need to buy this property."

If you have an investor and a consumer looking at the same property, the consumer will very likely say: \"I can\'t buy this because I don\'t have enough money and the bank won\'t loan me the money because I am not credit worthy.\"

In the same situation, the investor will say, "I know that this is a good deal. I'll find a private lender willing to fund this deal so that I can buy the property." The investor knows that private lenders first of all want to know if this is a good investment. They don't decide whether or not to fund the deal based only on your money and your credit. The fact is, if the investment really is a good deal, you will be able to find a private investor willing to provide the money.

Article Source: http://www.superfeature.com

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