Real estate Investment Tip #2- Three Keys to successful investment real estate finance

Successful investment real estate financing has been done by many real estate investors for years. Donald Trump and other real estate developers have used other people’s money for years to finance the building of real estate projects so the key here is to learn how to finance your next acquisition and how to make more money in the process.

This article will highlight three key areas that are important to succeed in investment real estate financing in your next real estate investment deal.

The Property Finance Plan

Successful Investment real estate financing should also come with a property finance plan.
This plan would list how much in rental you will receive, details of the property and how much you want to borrow from the bank. The reason for this is that it will be easier to convince a bank officer about the potential of you paying his monthly instalments if you can show him how much in terms of rental that you expect from the real estate investment in the first place and how much it measures out relative to your expected monthly instalment. You could do a financing plan and then print several copies of this and bring it along to all the bankers that you meet. The more confident you are about the deal, the more confidence the banker would have in you as well.

Your Credit History

A person’s credit in most cities is of vital importance to bankers today for the purpose of financing any real estate investment. The reason for this is that your personal credit history is used to judge your ability to pay your debts as they fall due. In most banking circles today especially in the cities, sometimes within 30 minutes to one hour of your default in payment, all banks would know of your financial inability to pay and your credit rating will drop.

Thus when doing investment real estate financing, you might want to run a credit check on yourself so that you can figure out what the bankers would ask and you would have a ready reply for them. Thus a good credit history can help you in investment real estate financing.

Your Prior experience

A good prior job or some property management experience may help in your application for the mortgage. As strange as this may sound it may make perfect sense for the banker. If you can show that you are responsible at work and make him believe that you can manage the property and the rental, there is a high chance that you will be able to pay him. Thus successful investment real estate financing depends partly on the ability of the individual to convince the banker that you can manage the property and pay him on time.

In conclusion, we have listed the three important keys to successful investment real estate financing that you might wish to consider when you next go to your banker to ask for investment real estate financing. Spend some time planning and thereafter take massive action to achieve your investment real estate financing goals today.

Three Tips to Successful Real Estate Financing

Many would be investors have big dreams about real estate investments they would like to undertake. However, they are at a loss how to finance such investments. As a result, many such people have ended up living below their potential. If you have had such lofty dreams but have had no idea how to accomplish them, then this article is for you. In this article, I will elaborate on three points that you should note as you prepare to face your financiers.

The first step in the process is drawing up a property finance plan. In this plan, you will indicate how much you expect from the real estate investment in the form of rent. You will also show how much you expect to borrow from the bank. You will require the services of a realtor to determine the prevailing rents in your area. With this figures at your side, you can show the financier that you will be able to repay the loan without any problems. The plan also reflects on your seriousness as an investor. You will impress the banker by the amount of confidence you exude as you discuss your real estate investment.

The second point that you need to note is your credit history. Your credit history is of much interest to your financiers. It is a reflection on your ability to make scheduled payments as and when they fall due. A bad credit history will be your undoing when it comes to real estate investment financing. It indicates an aspect of financial indiscipline. There is no financier willing to deal with an investor who is unable to pay the monthly installments as scheduled. How would he make a profit then? In our modern society today, credit rating is a very serious issue. Where there is default of a scheduled payment, all financial institutions will know about your inability to pay the loan installment in a matter of hours. This dents your reputation as a credit worthy person. Therefore, make sure you have a good credit rating before you face your financiers.

The third factor you need to consider is your experience in a previous job. The financier would be interested to know how responsible you were in your previous engagement. Experience in the area of property management or as realtor is a definite bonus for you. Therefore, if you are able to demonstrate your level of commitment from prior experience and convince the financier that you can take good care of the real estate investment then there is a very high probability that you will receive the funds.

In conclusion, we have seen that you need to consider three important points in your quest for successful real estate financing. They are not the only conditions but they play a significant role in convincing your financier that you are a serious investor who can be trusted with funds to finance a real estate investment.

How To Save Money On Car Insurance For Young Drivers? Read To Know

The cost of car insurance policy is determined by many factors typically examined by insurance companies online such as driver’s age, the location where he mostly drives a car on, the make and model of car, driver’s driving experience, etc. Insurance companies take into considerations these factors to figure out if driver will be a high risk. Usually, young drivers are considered risky as they are less likely to have good driving experience and skills. This is why it is challenging to qualify for cheap car insurance for young drivers. But, the interesting thing is that today many online insurance companies specialize in offering various discounts which you can earn to reduce your insurance cost or simply get cheap car insurance for young drivers. Before applying for insurance policy, it is advisable to get some knowledge about the same.

If you install security or safety devices in your car, you are less likely to get injured or your vehicle is less likely to get easily stolen or damaged. Many online insurance companies offer discounts for the same. Moreover, if you want to save money, you should think of joining a recognized driving course. This will improve your driving experience as well as skills and also could get you one more discount. One more way to get best affordable auto insurance is to drive less. If you drive less, the possibilities of accidents or similar circumstances leading to insurance claims will get reduced. Some insurance providers also offer discounts to students who score good grades. Besides, your driving location also affects insurance cost. Even make and model of car will affect what you will pay for insurance policy. Some vehicles are expensive to be insured while other cars are not too expensive.

Thus there are many aspects which you should work on to save money. But, most importantly, you need to locate insurance company which offers the most affordable auto insurance rate and also multiple discounts. One of the easiest ways to locate best insurance company in your local area which is willing to provide affordable car insurance with many discounts is to take free professional assistance of a reputable online car insurance service. These services which are closely connected with a huge online network of insurance providers that offer cheapest car insurance quotes will help you to get easy and quick access to best insurer.

The risk factor associated with you will affect your insurance cost significantly. So, it could be advisable to see if you can reduce the risk taken by insurance company by following some expert guidelines and improve your eligibility for affordable auto insurance rate. Get assisted by experienced car finance specialist to know what these guidelines are and how to get cheap car insurance for young drivers.

Log on to FreeCarInsuranceQuote.ca to get more information on young driver affordable car insurance in Canada. It offers various discount on premiums to lower down your monthly payments and helps you to save money. The interest rates are also so minimal compare to market rates. Visit us soon.

Real Estate Financing – What You Should Know About Home Mortgages

As the nation’s real estate market continues to grow and new technology gains more ground, many widely accepted beliefs that were true just a few years ago may not be true today. Before you go after a home mortgage or home loan or any real estate financing, if you have a lot of bad credit because of consumer debt such as credit card or personal loans, try to eliminate or reduce this debt as soon as possible because it’ll affect your ability to qualify for a home mortgage and the estimated monthly payment.

Some tips to know: whether you’re financing or refinancing. most people move or refinance within a seven year period. And loan programs for down payments of 20% or less require you to purchase Private Mortgage Insurance (PMI).

If you’re going to buy a second home or second property, you’ll need to identify the source or sources of your down payment, since you won’t be selling your current house and using the proceeds, and you’ll need to expect a larger monthly payment for housing and other related expenses too.

If you have a problem getting a home mortgage and the seller still owes money on the home you can check with your lender and see if you can get a wraparound mortgage. Although it’s not legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference; make sure that a wraparound mortgage will not trigger a due-on-sale clause ask the lender in advance.

Many people are not aware that they may be able to customize the length of their loans. Ask the mortgage broker or lender you’re working with. Although lenders usually advertise 15-year loans and 30-year fixed rate mortgages, applicants can ask for 20 years, 25 years or any other number of years that would work better. This may allow borrowers to build up their equity faster and keep their monthly payments in a range they can afford. Some lenders may impose strict limits on how much of the down payment can come from borrowing from other sources.

Some of the advantages of adjustable rate mortgages that are touted include: lower costs – because they are usually priced lower than fixed-rate mortgages so you can increase your buying power and lower your initial monthly payments then if the interest rates go down, you’ll have lower payments. However in all the years I was in the real estate business I never advised anyone to get this type of loan. With the changing market trends one can find themselves in a heap of trouble just like that. This would be a last resort loan and one would have to be sure they were not going to be unemployed in the next few years.

If you’re working with a local builder within a sub-division or housing development and you’re just making carpeting, lighting and appliance selections for a brand new home, you’ll likely be able to get a standard mortgage loan. But if you’re planning to hire the contractors, electricians, plumbers, and painters, you’ll probably need a construction loan, which provides the funds to pay the subcontractors as the work goes along.

You will want to work with your mortgage broker or lender closely to develop an individual home loan or home mortgage program based on your credit worthiness. If you have or think you have a less-than-perfect or ‘bad credit’ credit report don’t worry too much about it. When financing real estate it’s important to know that a low FICO credit score doesn’t mean you won’t qualify for a home loan or home mortgage. There is much ado about the FICO score these days but there are many instances in which it isn’t going to interfere with getting a home loan or mortgage. If you do borrow money for a down payment it must be disclosed to the lender or if any of the money for your down payment was a gift, be ready to provide proof of it.

The 20-year fixed-rate mortgages allow you to make a consistent higher monthly payment throughout all of the 20 years you have the mortgage; the shorter term means you pay the loan off quicker and therefore pay less interest and importantly, build equity faster than you would with a 30 year loan. You’ll also need to take into consideration what the closing costs will be. Ask about the escrow account for taxes and insurance.

Make sure to ask other homeowners how they’re doing and what real estate financing and home mortgage or loan pitfalls to avoid. And whatever you do don’t get yourself into a situation where you are unable to make the mortgage payments; make sure to think far ahead. Try not to get too overwhelmed with all the different home loan and mortgage choices available.

Make a list of questions and get the answers from any real estate agents, real estate brokers, mortgage lenders and any other real estate professionals you know or meet. Ask them about real estate financing, home mortgages, home loans, refinancing and current mortgage rates. Go online and get home mortgage quotes. Online quotes can often be cheaper because of the elimination of middlemen for example. And compare the quotes with other quotes you get locally to find the best rates for you.

Real Estate Investing – How to Secure a Commercial Real Estate Financing From a Lending Institution

Home financing and commercial financing are two different ball games. If you want to secure a commercial real estate financing from a lending institution, you must take into account the following points

Initial steps

Before you apply for a commercial real estate financing, you must lay the ground work for it. You must posses a complete business plan before you visit your lender. Its almost impossible to secure a commercial financing facility unless you can provide the lender with a viable business plan

What the lender is looking for

Your credit rating is the first thing that the lender will look for before even thinking about giving you a loan. It’s a simple rule: the higher the credit rating, the more chance of you getting a loan. If you have a high credit rating it reflects your ability to pay off the debt.

He will calculate your ability to pay back the loan after taking into account your incomes and expenditures and the current debt burden.

The lender will calculate the cash generation capacity of your proposed plan. If you are buying the property in order to rent it, he will calculate your future monthly rentals, subtract your projected expenses and then conclude whether the remaining amount will be enough to pay your monthly installments.

In other words, the current value of the property will not be as important to the lender as its future worth and profit making capacity. So you must be very clear about that: the major concern of the lender is that he must get back his money in due course of time. If you can assure him of that, there is no doubt that he will lend you money

The Risk factor

The lender will explore every possibility of your failure since it is his job to gauge you from every aspect. He will try to see loopholes in your project. Don’t be discouraged. He is just doing his job. The lender will not be analyzing your loan as an isolated deal. Rather he will be considering the overall scenario of the property market and then adjust your proposal to the prevailing market trends. If you have already done this before submitting your proposal, it could score a plus point for you.

The Lending process

The lender will communicate his consent to offer you the loan facility through a document know as a “commitment letter”. This is an official communication that the loan you applied for has been approved. All the terms and conditions governing the deal will be included in the commitment letter. It is very important for you to read and understand the commitment letter word by word. If it contains certain clauses that restrain you from doing your desired business in the future, you must get it changed now.

Securing a real-estate financing is not at all easy but if you can see the whole financing process form the lender’s perspective- and prepare for it in advance, there is no reason why you won’t be able to get your required financing.