Investment in real estate implies investing in fixed assets, particularly, in buildings. Real estate investment is a lucrative business having a wide range of opportunities for making good money. But investment must be undertaken only after acquiring complete knowledge of the business and mastering the tricks of the trade. If you want to be a real estate investor, you must find ways of securing finance for your deals. This is the first and the foremost step in the business since, without finance, you cannot take the next step.Obtaining finance for real estate is not as easy as it used to be in the past. Its reason being the current recession and the consequent risks that are faced by lending institutions.Below, we discuss some factors that can help you secure a real estate financing facility with relative ease and comfort. We will analyze the effect of the recent economic slowdown, ways in which lending institutions have modified their lending procedures, and how you can easily adapt to their present disposition.Credit worthinessWhenever you apply for a financing, the first thing the lender will demand to know is your credit worthiness. He will verify your income and also check whether you are already servicing a loan. If you are burdened with a few loans, he will be reluctant to give you another. The most basic principal governing credit worthiness of a potential client is very simple: He or she must have the ability to repay the loan.Location of the propertyThe next thing your lender will look for is the location of the property in which you are planning to invest. If the property has high market value, it will translate into bigger profits for you and strengthen your ability to repay the loan. On the other hand, if the property has no market value, it will put you in a jam and you can end up being unable to service the loan. Apart from the location of the property, the lender will also consider other aspects that might affect your future profitability. They include the size and the condition of the property and the price you are planning to pay for it.Risk FactorDefault of a customer is the eternal apprehension of the lender. There are numerous reasons that might culminate in default. You must assure the lender that no such thing will happen to the financing provided to you. For this purpose you can present them with your previous debt servicing record. You must also make sure and convince the lender that there are no risk factors involved in the property that you plan to buyPick the right lenderThe lender is the most important person in your real estate endeavor so it is imperative that you select the right one. The lender must be willing to finance you and you should feel at ease dealing with him. You must, on your part, be very sincere and co-operative. Some of the questions asked – and documents demanded- by the lender seem irritating. They are not. He is just checking things out and making sure that the facility that he extends to you is a good and secure investment.If you have completed all the paperwork in advance, and are willing to co-operate with the lender, there is no reason why you should fail to obtain a feasible financing facility for your real estate deal.
You don’t have to have a high IQ or MBA to succeed on the stock market, or in any other form of investing. All you need is some good resources, advisors, and access to financial investment tips. No, you’re probably not going to become rich overnight, but you can still come up with a good long-term strategy. There are always two very powerful tools to keep in mind: time and compounding interest.At any rate, you really need to make sure you have the best resources. You don’t need to have a lot of money to invest, as trading commissions and broker fees are a lot more affordable now in the age of the internet. If you’ve never invested before, the best time to start is now. The earlier you start, the more time you’ll have.Financial Investment Tips Anyone Can UseHere are a few financial investment tips for those who don’t have a lot of knowledge or experience:• Before you even begin to buy any stocks, you’ll need to pay off any high-interest debt you might have. Get your current financial situation in order before putting money anywhere else. Start an emergency fund or savings account with a financially-stable bank that is FDIC-insured. Only then can you start thinking about stocks.• Have an understanding of your investment goals. Why do you want to invest? How much time, energy, and focus do you want to spend on your investments? Do you have any specific stocks or industries you are interested in? What is your risk tolerance? Consider joining an advisor program or newsletter that focuses on the types of investments you are interested in.• Think about your overall priority. If your priority is to not only preserve your money but to grow it as much as possible, then you’ll probably want to avoid dividend-paying stocks. On the contrary, if you want to rely on stock investments as part of your income, then it might be ideal to focus on higher-paying investments (including index funds).• Decide if you want to invest in funds or individual stocks. If you do have enough time and energy to put into research, then individual stocks are definitely worthwhile, as they can offer a bigger pay off if you do everything right. However, there is nothing wrong with starting your portfolio with low-cost EFTs and mutual funds.• You probably already know that you’ll have to diversify your portfolio. It is a must for every investor. However, it’s okay to take things slow and to start off with just one or two simple investments.One of the smartest things you can do to receive the best stock picks, recommendations, and financial investment tips is to look into the newsletters offered by Motley Fool. Choose from a variety of stock picking services, discovery services, portfolio services, and more. Motley Fool discounts are sometimes available for new members.