As an investor you know it is important to be able to build your wealth. When the usual ways of doing so aren’t sufficient, its time to consider some more creative financing tactics. These often prove to be more lucrative than other methods.
One way to build wealth as an investor is to pay close attention to the real estate industry. Every seven to 10 years you will see a decline in the industry, but this is when it is the best time to invest. Though you are less likely to be able to get a bank loan, you have other, more viable options to choose from.
When the stock market is on the decline, individual private lenders get nervous and choose not to invest in it. But in turn, they are more likely to invest in real estate, knowing they will be able to get their money back. Furthermore, they have confidence that the amount of rent money they will receive will exceed the amount of any interest rate they have to pay. Sellers are more likely to seek out financing when the stock market is actively plunging.
Creative methods of financing leave a lot of room for negotiations that will benefit you as an investor. When you borrow money from a private lender, small business, or seller, you are taking less of a personal risk than you would be by taking out a bank loan.
One of the reasons bank loans are so risky is that you have no control over them. But when you acquire financing in a creative way, you are in control of the loan terms and conditions. Unlimited funding can be acquired when your level of creativity is high.
Another reason you may want to avoid taking a bank loan is that the process is often extremely time consuming. Making investments requires you to obtain money quickly. This can be difficult, if not impossible, to do with a bank. With more creative financing you can often close deals in a matter of days.
For more ideas on creative ways to build wealth please contact Growth Capital Team.