FINANCE
1 . Your Deal-Maker Status
Emphasize your role in finding and securing the deal . Without your expertise and efforts , the project wouldn ’ t be happening .
2 . Risk Mitigation
Ensure that the bank financing is offered on a non-recourse basis for private investors . This means if anything goes south , they only risk what they put in — not the entire loan amount . This adds a layer of security for them .
3 . Attractive Returns
Once private investors see the potential returns from leveraging their investment , they ’ re often more than willing to jump on board . The power of gearing — using borrowed funds to amplify returns — can make for a very enticing proposal .
The Bottom Line
Securing financing , whether through banks or private investors , is a critical skill for property investors . It requires strategy , persistence , and a bit of finesse . By casting a wide net , negotiating assertively , and engaging your network effectively , you can unlock new opportunities in the property market . Remember , every conversation can lead you closer to your next big deal .
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62 REI MAGAZINE OCTOBER 2024