Investment Property – Real Estate Finance and Economics

The most important aspect of any real estate transaction is money and how to obtain a mortgage of real investment. The supply of money, are all possible, do a real estate transaction is real estate. All hinges on a successful real estate financing, since it is the most important aspect of the offer. Financing is a seemingly simple word, but it is not easy. It is the capital and asset allocation and fund management. Today, most people for money are key. Then you will find the money for a real estate transaction has become very difficult. If you do not have money for a transaction, you must arrange the money. This should approve a mechanism for funding. This is the first step in any real estate activity: the financing. The next step can be applied only when this phase was completed successfully. In order to finance their real estate business, you should keep in mind few things. 1st Solvency of banks: You have an impeccable credit rating, is because the lender to avoid that if you know you have been in retrospect on previous loans. Do you have bad credit history, not make the effort, a line of credit request. If you have a good credit history, is the closest thing to your credit look. It is taking into account all assets and liabilities and determine your income and expenses. Make sure you meet the creditor who has applied for funding. The current crisis has become very tired of the distribution of loans to persons who in his opinion, can not afford. 2nd Cash flow: application of sanctions as a lender of the loan the lender to determine whether they afford the monthly payments without adding unbearable burden themselves. It is here that the cash flows This should be a solid plan for the property shows the cash flow have continued. Must be respected as regards the ownership of future cash flows of the draft agreement. 3rd Feasibility of the proposed plan: If you submitted a real estate lender, please be sure to evaluate the long term, because if the company is not profitable, you will get – and take your money for you. The lender is more cautious, because their money is at stake Check the feasibility of the plan before sending. Note also that the supplier has a professional and is looking for loopholes. And look “better first and get rid of before the lender. 4 The security of future payments: The lender must be sure that waste of money. He must be convinced to pay the mortgage on time, plus tax and payable , amounts to the establishment of regulatory authorities. Of course also examines their credit history and check your credit rating. However, you need to convince them with words.

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