100 % Financing for Investment Property
Posted: Wednesday, October 28, 2009
by Thoriso Mashego
Mashcor
I get asked all the time if 100 % financing for investment property is still available. That can be a very difficult question to answer in this ever changing economic environment. It seems like every morning there is more bad news on the economic front. It has gotten to the point where there are days where I hesitate to turn on the news stations or log on to the Internet. As commercial real estate investors we are being bombarded with all the negative information constantly flowing in.
Knowing where to look for 100 financing investment property is the first thing that needs to be done. Consumers have been used to looking at large financial institutions for their commercial real estate financing. This may no longer be the way to go.
Consumers may now need to look at those smaller home town institutions to get there deals completed. These smaller banks usually do not have all of the red tape that needs to be cut through to get a property financed. These institutions may also have bankers that are willing to go to bat for there customers. These bankers have more time to spend with each customer because they have less customers to deal with.
Bankers at these smaller institutions also seem to be very connected with the local community and have very intimate knowledge of how the real estate market is surviving at the local level.
Picking the perfect real estate listings is also going to make your job of finding 100 % financing for investment property much easier. You need to educate yourself about the local commercial real estate market. Making contacts with real estate agents is one way to gain a wealth of knowledge. These people are out dealing with the local market every day. They know the areas that are moving and the areas that are not. They know the areas where the banks are willing to take risks, where the deals are being done. They know if the area you are looking at is dead right now. If you do not have the financial strength to wait out the drought, you do not want to be buying there.
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Top-level comments on this article: (3 total)Dr. Mashego, great advice for real estate investors. It seems that the down turn in the real estate market may help local banks gain dedicated investors. Thank you for submitting this article.Its my pleasure, I hope they do, wouldn't it be funny seeing a huge crowd outside a bank ready to invest? I think people were caught expecting house prices to be always going up.Funny thing is, you can make money and save 25-50% taxes in a down economy. I certainly am doing it everyday.
Hi Dr. Mashego. Thank you for writing this article. This is informative as well as insightful. Great advise for those who are looking for 100% financing. Best to you and yours, ~Nenita~Always happy to help out. Best to you too.
It is a tough market almost everywhere. Thanks for sharing the differences between the local smaller banks as opposed to the larger establishments.My pleasure. I always find that a local based investor will be able to tell me if something will excite the local residents and get premium return on investment.The local bankers tend to also be in the same know about the possible impact. But like in the end, you must think outside the box and leave the masses to chase their tails.
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