The funds should be always in rotation which would help you to do investment smooth. Preserving funds for forthcoming investment is essential, but when you don’t have funds, here are the few financing strategies given by DC Fawcett.
The reviews of DC Fawcett are as follows
- Bank loan financing
This is the most traditional method but still chosen as first option by many investors. You own cash already for down payment and the bank will help you out in rest of the payment. The eligibility criteria are based on your financial overview, credit score and paper work should be fine. Many investors may or may not qualify. You can’t depend on bank totally for your down payment, and then bank can give you 10 to 20 % of down payment alone; else your request is rejected. There is a clause that you cannot avail second financing that is you are having funds somewhere else.
- High ratio financing
It has strict guidelines than bank loans, but it is recommended as one of the best options for new investors. You get cash with good interest rate. You can live in that property for few years, move out and sale it for a higher price. When you opt for high ratio financing as second financing, see to that you can repay when rate of interest rise or fall quickly.
- Home equity line of credit or HELOC
When you don’t have money for down payment, you need to find a financing strategy. Many would prefer HELOC scheme in addition to that you should have lot of equity. The bank should pre-approve it, by checking your mortgage and other financial qualifications are satisfactory. Then this scheme can be sanctioned.
- VTB and private mortgage
VTB is vendor take back where seller finances you. RRSP is registered retirement savings plan can be used when they move their scheme to self–directed RRSP and finance you just like how a bank provides you loan. Private mortgage is borrowing money from an individual. This is quite flexible strategy, the amount you are allowed to borrow; eligibility criteria and repayment options are flexible. The above 3 mentioned schemes can be used in first and second mortgage.
- Joint venture
When you aren’t qualified by the bank, the next best option is Joint venture. Joint venture is an agreement where two parties come together in consent to use their resources.
- Local lenders and online sources
These lenders don’t have much criteria to satisfy, you can avail money easily. Send direct mail campaign requesting you are in need of money to all the lenders you know. You might get loan from any one at least in your list.
Conclusion:
There are many ways in which you can improve your portfolio. To prevent from scam and to know more about financing strategies, visit DC Fawcett virtual Real estate investing club where blogs are written for the investors. New investors can try out Virtual wholesaling at free of cost.
