No investor has huge funds available to buy properties. He is always looking for sources from where he can finance purchase of investment properties. You should know how to ask for another people’s money to become a successful investor. The success of your real estate business is therefore totally dependent upon your ability to get money from others to finance your purchases.
Real estate investment involves risk
You can leverage other people’s money for real estate investing. This money can be sourced from either banks and other traditional lenders or hard money lender. It can even be an individual financing your purchase of real estate. No matter what source you use for securing finance, the way you ask for money remains the same.
Lender wants to satisfy himself
The important thing to remember here is that no lender worth his weight in salt will hand over money to you without satisfying himself about the usage of money. While the question uppermost in their mind is whether you will repay their money on time or not, they nevertheless ask you many related questions. They want to assess the kind of risk to which their money will be exposed before taking a decision to finance your project. As a borrower and an investor, it is your job to reassure your lender about the safety of his money. You should also be able to convince him that you can be trusted, and you will return the money with interest on time.
A banker’s book will do the job for you
Words alone cannot convince the lender about your trustworthiness. He will need to take a close look at your banker’s book to examine your past record. A banker’s book contains every financial record you have conducted in the past. Nothing about your financial past remains hidden once you have laid bare your banker’s book in front of the lender. He knows that you are a low risk, or a manageable risk proposition and he can put his money on stake for you. If you want to know what is there in your banker’s book to tell the lender about your trustworthiness, it contains every single bit of financial information about you. It contains sensitive information that you do not wish to share with everyone. This book is only for the use of those individuals and institutions that you want to do business with.
If you do not have your own banker’s book, you can see the sample book of other individuals by going online. You can copy the table of contents from one of these samples and then enter your own details to complete your own banker’s book.
It is better to take help of a professional
It is not rocket science or something very complicated to compile your own banker’s book. But if you have no idea about bookkeeping, it might be a challenging task for you. If you carefully look at the table of contents, you will get an idea of what information is required under different headings. You can take help of an accountant to make your banker’s book containing all financial records about you.
If you are an aspiring investor and ready to ask for other people’s money for your real estate transactions, it is high time you learnt how to make your banker’s book. You will find that your job of asking for people’s money has become easy and very simple as this book is self explanatory. All you must do once you make your banker’s book is to keep updating it to keep your records up to date and accurate.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
Property Management Service Areas
Palm Coast Property Management
Flagler Beach Property Management
Ormond Beach Property Management
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
