People call me--again and again--saying "I found this beautiful 20-unit garden apartment house for sale that shows a great cash flow. But I can't get financing. What should I do?"
The simple answer is: FIND A LENDER THAT SPECIALIZES IN GARDEN APARTMENTS!
Remember--REAL ESTATE IS THE WORLD'S BEST BORROWED-MONEY BUSINESS! In real estate everyone--including lenders--expects you to borrow the money you need. Real estate investors rarely pay cash for income properties. Instead, they BORROW the money they need. And their borrowing makes lenders happy! Why?
Lenders earn more from the loans they make than from any other investment they make. So lenders seek to make more loans because these loans increase their income. And you can help increase a lender's income, while raising your own tax-sheltered cash income, by borrowing for your income real estate, instead of taking cash out of your bank to buy the property you want.
But how do you increase your success rate in getting real estate loans? The answer is:
1. Deal with lenders who specialize in your type of property.
2. Find lenders who will both deal with your credit-rating situation (if it's a problem) and with the type of property you seek.
3. Use the lender's Loan Application when you apply.
4. Type the Loan Application throughout. The only handwriting on a Loan Application for an income property of any type should be your signature!
5. Don't hassle the lender for a fast answer. Lenders have their approval proedures and they insist on following them. Demanding a fast answer only irritates your lender. So be patient and wait for the answer from your lender. Doing so may get you the APPROVED response you're seeking!
So how do you find the right lender for the real estate property you want to buy?
For years my staff and I have researched real estate lenders of all types. Result? We have thousands of real estate lenders categorized under the following headings:
Property Type
Loan Types
Loan Purpose
Lender Types
Lender Subtypes
Lender Organizations
Specialty Lenders
Private Lenders
Poor Credit Lenders
Miscellaneous Lenders
These lenders are available in our books and newsletters. Contact me if you have an especially challenging loan situation. I may be able to direct you to a suitable lender. This could make your life a lot easier!
Tyler G. Hicks
1 comment:
To dh:
Thank you for your comments on my real estate books. You were most kind in your remarks.
I do regret not being able to see you over the July 4th weekend. But I had promised my wife and children to take them on a short cruise on our boat and did not want to disappoint them!
Tyler G. Hicks
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