getting finances

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From: Anonymous


hi,
you always read stories of the great property investors of our time, and as part of their advice i have always found something more or less like this "you can get a loan more ways than just from a bank" also" you don't need money to make money" or "you dont need money to get a loan"....but they always fail to give the specifics....

i want to know..if all or even some of that is true, then can someone tell me where i can get a loan without money-or without as much money, and what other sources are there than banks (and mortgage brokers)???

etc etc.
thanks
 
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Reply: 1
From: Michael G


Hi,

I really don't know why such a question requires anonymousity (if that's how its spelt). I just like to know who I'm addressing. I mean if you were to ask that question at an investors meeting, wouldn't you at least greet the person you're asking the question to your name?. By all means hide your email address so you dont get spammed, but please, don't be so rude as not to even give a name, or nick, by which you can be addressed by. If I'm going to take the time and care to address peoples questions on this board, I would like my wishes respected in kind.

Having said that, there are many ways to obtain funds. First step, spend a few $ buying some books on creative finance, check www.amazon.com for such books, but first thing to think about is, WHY would someone lend you money?

- if they will get something in return
- lending you money is safe investment
- if risky, then the return compensates this
- there is a measure of collateral (or hurt money) in the deal, which will cover their loss
- they believe you are their best option to invest their funds with

So you need to think about

- what can offer them?, a % of profits?, a good interest rate?
- what insurances will you give to repay the money?, do you have collateral?, assets?, if not, what else can you do?, if there's nothing, what return will you give the lender for higher risks?
- how will you show that your their best bet?, can you show your strategy and plans which show you've thought this through?

People just dont hand you money for nothing, they expect something in return.

Ok some basic sources of funds;

- vendor finance - get vendor to fund % of property as a second mortgage

- draw up a FORMAL mortgage contact with family to draw off their unused equity and secure it against your property.

- contact your solicitor, see if they have private funds

- advertise, "investor partner wanted"

- lease/option the property from the buyer

They are just some ideas.

For more information read;

- the credit code of Australia
- any mortgage document
- a harvey norman interest free purchase contact
- any other loan document you can get your hands on.

Companies like Harvey Norman, Radio Rentals, Car Yards, etc are ALREADY doing creative financing, the difference is, they are OFFERING it whereas you WANT it. So all you have to work out is, how they do, and redraft it to make it interesting for people to give you money on those terms.

What does the likes of AVCO or AGC, happily lend money?, because the terms are attractive for THEM!

Michael G.
 
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Reply: 1.1
From: Anonymous


thanx for that,
i didn't think it was rude to stay anonymous, the reason i did it was because it is the first time i used the forum and i could not get the thing to hide my email...i have been "spammed" before on another website and i have tried the "hide email" function on the site but it didnt work
 
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Anonymous

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Reply: 1.1.1
From: Anonymous


Hi,

Actually I didnt say it was rude to hide your email, I said it was rude not to introduce yourself, if you are going to ask others for their time and help.

Regards
Anonymous formally known as Michael G.
 
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Reply: 2
From: Anonymous


Anonymity
 
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