HOW TO GET RELIABLE FINANCING WHEN YOU NEED IT by Hannah Perrine, CIVIC Financial Services
I nflation, interest rates, and recession are pedaling through the headlines. It’s clear that the economy is facing a difficult reality and we’ve seen the direct effect of that over the last year as the Federal Reserve increases interest rates. As this trend looks set to continue, real estate investors are naturally unsure of where the market is heading. Today, many savvy investors are making this uncertainty their greatest asset and diving in headfirst to the opportunities being presented. However, great opportunities require a require a sound and stable financing strategy. Having a consistent, reliable capital partner is perhaps the most important element to building a solid business model. Often overlooked, reliability should be a high priority for any investor. What if your contractor doesn’t show up? Maybe your real estate agent stops finding you deals? What happens if your lender shuts their doors? If you don’t consider reliability in every aspect of your business, one shaky domino can topple the whole foundation. When it comes to selecting the right lender, be sure to plan ahead and
look at the entire financing package – their access to capital, experience, and financing options. To put it simply – you’re taking on debt, so do your due diligence to ensure you’re building your financing structure on a solid foundation.
PLAN AHEAD
The most important aspect of success in real estate investing is having ready access to financing when you need it, so you can seize opportunities in today’s dynamic real estate market. In fact, many investors will wait for the right opportunity to roll along only to see it vanish because they didn’t plan ahead and have capital partners with different financing options all lined up and ready to go. If you’re only looking for capital when you need it, 99 times out of 100 you’re not going to make the best decision—only the fastest. The better strategy is to cultivate your real estate financing sources first, beginning with understanding the different options that are available, knowing what lenders are looking for, and assessing the reliability of the lenders you choose to partner with.
14 | think realty magazine :: january – february 2023
Made with FlippingBook Online newsletter