Borrowed Funds To Investment Interim Real Estate –  Anew Way To Get Rich

Investment interim real estate is the new direction of many investors in our country. From the end of 2016 until now the property market is on a large scale in terms of size and form.

Investors are not only backed by owners but also encouraged by reliable sources of finance. Bank loans for investment interim real estate at the present time are considered as the most potent way to make money.

Real situation of bank loans for investment interim real estate

It can be seen in the current socio-economic situation that bank loans are no longer something so strange. People can trust loan, consumption loan, capital loan to investment interim real estate.

In recent years, the form of bank loans for investment interim real estate has grown strongly. The relationship between banks and investors is a mutually beneficial relationship. If investors lack capital, the bank will be the source of capital to ensure their investment. For banks instead of the concessional loan, fiduciary loan, lend money on the mortgage with a profit of 1%-3%. So the return on real estate loans can be up to 9-11%.

Bank loans for real estate investment are very exciting

Because of the profitability that many banks do not regret lending to investors, investors are also lucrative for real estate deals that borrow money. The relationship between banking and investment interim real estate is that supply and demand in the future. They will be the spearhead for economic development.

Potential and challenge of borrowing capital from banks to investment interim real estate

Having said that to borrow real estate investment we can not fail to mention the two core issues are the potential and challenge of this type of “venture capital”.

Potential

In the context of growing country, the process of urbanization and industrialization is going on strongly. The property market is warming up from the price of agricultural land, residential land to land or other types of vacation apartments, hotel apartments are fluctuating. The investors boldly borrowed bank capital to investment interim real estate at this time and are highly appreciated and the ability to profit from this is very large.

Investment interim real estate is profitable

In addition, bank loans for real estate investment are not only good for banks and investors. It also promotes economic, political, social, and developmental infrastructure.

Challenge

Accompanying the profits is the immense challenge that investors face when they borrow capital from banks to invest in real estate.

Bad debt due to false property investment

Loans from banks are always resolved quickly to create conditions for investors to grasp the opportunity. However, along with quick procedures, dedicated support, the interest rate that investors pay for the loan they borrowed is not small.

In the case where the investment property is falling or recovered, the investor not only loses profits but also leads to losses or even bankruptcy.

Some notes when borrowing bank capital to invest in real estate

In order to minimize risks in bank loans for real estate investment, we should note the following points:

The first factor is also the decisive factor in borrowing real estate investment capital. Although banks have a policy of lending support, if the investor does not have a fixed capital, it will be easy to go bankrupt when the problem arises. Not to mention other factors such as high-interest rates will cause the owners of the problem of bad debt … Useful advice from real estate investment experts is to borrow money for real estate investment, but do not borrow more than 50% of the total value of the property.

The second factor is to take advantage of all the advantages of borrowing. In addition to regular lending for real estate investment, loans from the government, construction loans, ODA loans, etc. are usually available at banks. much more preferential rate. So taking advantage of loans also helps a lot in reducing interest rates when borrowing, saving some of the costs and increasing profits for investors.

Strategic vision determines success

The last element is the vision, for real estate investment loans that are invested in risk. So investors, in addition to being knowledgeable, need the vision to grasp and choose the opportunity to mitigate undue risk.

Bank loans for real estate investment is a bold business model. However, it will be a golden opportunity for investors to stabilize their capital, having a strategic vision in the current context.

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