Make Money Fast and Change Your Life, many get-rich-quick schemes advise us. Yet a great number of these disappoint, never delivering the promise. But a get-rich-slow plan can be almost foolproof, if you are investing in real estate and collecting investment properties. Consider this: it is still a buyer’s market in real estate, and a perfect time for you to begin purchasing properties for investment.
You have probably already made the right decision by retaining the services of a smart real estate agent. You made an offer on the house, and settled on the price with the seller. Now it’s time to shop for a mortgage, or investment property loan.
Some buyers have the money in hand to purchase the property in which they are interested. But if you’re like most of us, you will need help with most or all of the financing, and that’s where the investment property lender comes in. Before you settle on a banker, be sure to educate yourself to be certain that the lender best suits you and your financial situation. Your real estate agent may be a big help in this area, pointing out the high and low points of each lender.
When you actually visit the lending institution or private lender, prepare yourself in advance by writing down every question you can think of to determine whether this is the right lender for you. Once you have conducted your interview, don’t be surprised when the lender turns the tables and begins asking pertinent questions of you. Be ready to answer prodding questions to establish for the lender your character, your finances, the state of your credit and what kind of collateral you will need to secure the loan you are asking for. You will also have to prove to the lender that the structure of the house is sound, the location is good and that this will be the kind of investment worth lending money to pay for.
In addition, the lender will undoubtedly require that you have the house professionally inspected, something you should always do before the sale goes through anyway, with the return of your down payment contingent upon the outcome of the inspection. A hard-copy investment plan that you can put into the lender’s hands would be a big plus in your favor, and include real details involving your business strategy.
This may be your first step toward owning several investment properties, a terrific buffer against any future economic downturns. So consider the whole process--of question and answer, your submitting positive evidence, and allowing a rather personal investigation--absolutely necessary to attain your goal. And that goal, you haven’t forgotten, is to make a handy profit on this property.
Also, keep in mind that nothing is free, and you will be expected to pay back the loan, plus interest, so be realistic in determining how long you will need to accomplish this. And when you receive the financing you have sought, congratulate yourself on a job well done.