Wealthy people know the value of borrowing, broke people keep chasing cash.
You’ve already heard me countless times talk about the importance of raising finance. Most of you may have witnessed me launch a dozen projects without using my own money to begin with.
But, how do you actually start the process of borrowing money?
Banks and private investors don’t just freely lend money to anybody who asks.
1. Work with credible people.
Before you can borrow money, you need to build your credibility. Make sure you find builders, contractors or developers with a good reputation. The better the credentials, the higher the probability the bank will lend you the money. 2. Look for an excellent broker Brokers are everywhere, but a brilliant broker will go out to the market and find what products are right for you and for the deal. Do they think buy-to-lets are more profitable? Or maybe you’ll find an edge with commercial HMO mortgages? 3. Calculate the costs Remember to break down the proposed budget for the project – from the build costs down to the selling fee. Don’t forget to factor in the borrowed money. How much is needed for private finance? How many months will the bank allow and what are the interest rates? 4. Get the right training Make sure you’re also investing in your training and coaching. When you are absorbing the correct information and are surrounded with the right community, you’ll be pointed towards the right direction.
5. Pull the right team You don’t need to know all the ins and outs of your project. It’s the same with not knowing how exactly the electricity works inside a house – all you do is pull the components together and flip the switch. Find the right team, investors, broker and building crew and before you know it, you’ll be moving forward to success in no time.
Do you want to focus on what you do want in life versus what you don't want?
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