Investment Financing is still a reality...!!!

With all of the bad news these days of a crashing housing market and the banking industry collapse, one of the repeat questions from friends and acquaintances is "There are a lot of deals on housing out there, How do you find the money to do your deals?". Simple answer. I do exactly what I have been doing for years. I borrow it. And I borrow more. And I borrow more. Then guess what. I borrow more. Not from an "insider" in the banking industry. Far from it.
I borrow from any source that will lend. Normally a local or regional bank or Savings and Trust.

One nice thing about banking. It is exactly like real estate. Terms and conditions are local. The only way a bank can make money is to either charge fees to their customers or to lend money. The more money they lend, the more they make. Simple math.

Now I am not saying I can go the same bank I bought thru last month to do a deal this month. It is not that easy. I do that as much as possible, but not always. I dont like to have all my eggs in one basket. Liken it to exactly sourcing parts in a manufacturing plant. It is always smart to havea backup vendor in case your primary supplier goes under. Unless you are your suppliers main customer, you are at mercy to the market. Same in real estate. Get on the phone and call. And Call. And call. Dont misunderstand me, dont risk a restraining order by calling the same bank lender over and over. When I say call, then call, and call again, I mean go to the next bank, credit union or savings and trust on your list. When you get thru the list and still havent found what you are looking for, either get a new list or look at what questions you are asking when you call. Are you even talking to the correct person?

Many banks have different divisions. Some have a division for just residential, and some have a division for commercial. YOU NEED TO BE TALKING TO THE COMMERCIAL DIVISION!! Let me repeat. YOU NEED TO BE TALKING TO THE COMMERCIAL DIVISION!! Why in the world would you limit yourself to the same housing market as 95% of all purchasers. Get in on the 5%'s (I know, not a real word.)

Commercial lending is easier to qualify, and there are still Zero Down loans Available!!! And I am posting this after the Presidential Election. This is not old info!!!

So if you are still having problems getting your funding after reading this blog, Post a question or a comment to the site to share with everyone else. I will give you an answer right away!!! Happy House Flipping!!!