Strategies for Getting Started in Real Estate HTML version

Getting Stareted in Real Estate
This last segment is me rambling on about finance, so take what you can from it
and do the basic things we have been discussing along the way. Let’s get the
paperwork together.
Here goes.
A Psychological Financial Thriller
Finance, A Necessary Evil
Before we get started, I want to ask you a question. Who loans money? The
Federal Reserve, commercial banks, insurance companies, mortgage backed
securities, lenders such as Fannie May, Freddie Mac/HUD, local savings and
loans, credit unions, mortgage brokers, wealthy private individuals, the sellers
themselves, and credit agencies of various organized structures including credit
card products.
How about a wealthy family member, partner, or friend? Equity lines or yourself
in the form of personal savings, or by using brainpower to creatively structure
deals using no money at all?
If you’re counting on me to tell you one surefire, easy method, then keep reading.
The only way I can do that is to bombard you with ideas and let you come to your
own Magic Bullet solution. We all have a very different situation and as a result,
your alternatives will be different than mine.
Here’s your first bullet. Institutions don’t lend money, people do!
A building can’t approve or disapprove anything so you’re going
to have to understand people and how they think in order to
persuade them into seeing how you can help them by getting the
loan. You fill their quotas.
The people who decide whether or not you’re getting financing have to know in
their own mind that you’re not going to jeopardize their own financial security.
They don’t want to be fired or go broke or have to fight you in court, or anything
else that requires time, effort, and money just to break even. These people want a
benefit not a headache.