4 Right places to source for real estate funding

[Augusta]

When it comes to funding a real estate project, a lot of times self financing would not cut it as it is always capital intensive and money demanding. So the best bet will be looking for external funding that can come to the rescue almost immediately.


So what are the sources that are bound to help you to achieve your real estate business dreams.

1. The commercial banks;The commercial banks don't only accept deposits by people but gives loan to receive interest. They can find your real estate desire.

2. Merchant Banks: These are big financial establishment that provides the money for equity financings and for debt

3. insurance companies : You can approach the insurance company to source for funds for your business

4. mortgage institutions : Another good place to source for funds for your house or property buying is the mortgage institutions in your location. They can help you finsnce your purchase.

Add yours?

 

[allison001]

Anyway real estate is a trusted investment at least if it is done rightly , if not I wouldn't even advise people to be getting loans or money to invest in real estate. But well, loan can be gotten here because as long as everything is being done rightly , the possibility of losing your money in real estate investment is extremely low .

But in all the same , I wouldn't want to get money personally to invest in real estate but I rather wait and raise the needed money to start my investment journey , I just believe it is easier that way just to relieve myself of the stress of being in debt...

Even if you have to get money from merchants bank , I believe there will be some sort of collateral you must keep in place before you are given the loans.. you can't get it like that.

 

[Augusta]

Yeah self funding is allowed but truth be told how many people can easily save money to buy a property that would worth some thousands of dollars. Though it sounds doable but In reality it is not easy to achieve that's why some people prefer to get external funding from sources I have mentioned above.

Yeah no bank give out their losbs free. Even simple loans that you just want to expand your business it will be given with interest. but with deal estate there's no way you wouldn't recoup that interest at least in the next 4-5 years when you stsrt commercializing that property. I'm not even talking about the inheritance you would be leaving for your children by buying real estate.

For me real estate is always a win win for everybody because it might not just be for the benefits of the buyer if it is properly manager by an agent it will outlived the real buyer.

 

[Shigobad2020]

Real estate is a good and lucrative business that brings you more fortune if you decided to go into the business but not just anybody can be into real estate business because it requires money to start and not just small money unless you are willing to become an agent getting ten percent from the agreement made between landlord and tenant , so there are ways in which you can source for your business fund ,

First you can do self funding , its a process in which you fund the business with your own personal money if you have enough to start the business .
The second way is by saving up for the start up business , if you realises the money you have at hand is not enough to start the business, you can start saving up for it .

The third way is by getting a loan from banks which you will be paying back with interest .

 

[Augusta]

Yeah starting or getting into real estate business needs good amount of business unless you want to be an agent which will only be about bringing in buyers for commission. But if you want to do the actual buying and flipping then you would need to have money sometimes if you wait for your savings to do it, it might just take longer time so the best bet will be to source funds from institutions that can provide you with good enough money to start the business.

Banks like the mortgage banks, commercial banks and even merchant bsnks provide this kind of funding. the thing is for you to get the requirements right. Because getting this loans come with conditions so you would need to have the needed requirements to get the funding.

But it you can also source from friends then you can go ahead at least it will come with lesser interest

 

[Jasmine]

It does not matter what you call commercial banks, merchant banks are all banks mortgage institutions. While commercial banks provides loan to all kind of services, mortgage institutions are geared towards providing loan on in the real estate market, they operate just like normal banks. Commercial banks and merchant banks have no difference, the only difference is in their name. Just like commercial banks that source funds from deposit from general public, merchant banks also source their funds from general public, they might be geared towards lending to big institutions but they cannot exclusively cater to big institution because they also have to collect money from common people. Real estate funding from insurance companies are available only for the developers and not for common people. If you have a policy with the company, you can use your policy as collateral to get a loan. But the loan amount is very small.