FINANCE
Maximise Your Banking Options 1 . Cast a Wide Net
When seeking finance for a deal , don ’ t limit yourself to one bank . Each institution has unique lending criteria and risk appetites . By approaching multiple banks , you significantly boost your chances of securing the funding you need . If all banks decline , it ’ s a signal to reevaluate the viability of the deal .
2 . Play the Field
For smaller projects , like buy to let properties , consider enlisting mortgage originators to help you navigate offers from various banks . They can gather offers from various banks on your behalf , saving you time and effort . But for larger deals , a direct approach to banks often yields better results .
Once you build a solid track record as a property investor , you can negotiate better terms by playing banks off against one another . Trust me , it ’ s a game worth playing ! I ’ ve made over 20 calls in a single day just to test how far banks are willing to go . For example , if Bank A offers to finance your project at prime minus 1 %, call Bank B and see if they ’ ll sweeten the deal to prime minus 1.5 %. You ’ d be amazed at how often you can turn a “ no ” into a “ yes ” simply by asking .
The Art of Negotiation 1 . Prepare for Battle
Securing financing can be a rigorous process , especially if you ’ re new to the property game . Seasoned investors rarely accept the first offer . It ’ s all about persistence and negotiation skills . Expect back-and-forth discussions as you present your case for better terms . The art of negotiation takes patience and strategy — it ’ s a war of attrition !
2 . Read the Fine Print
Always scrutinise the documentation . Miscommunications between bank divisions can lead to costly mistakes . Confirm that what you agreed upon verbally matches what ’ s on paper . This diligence could save you from unexpected surprises down the line . Pay attention to the fine print and protect your interests !
Engage Private Investors when needed
Sometimes , banks may not cover 100 % of your financing needs . If you find yourself in this position , consider two options : invest your own money or seek private investors . If you ’ re leaning towards the latter , you ’ re not alone . Learning how to attract private investors is crucial for funding your projects without dipping into your own pockets .
62 REI MAGAZINE OCTOBER 2024