“Don’t Try to Catch a Falling Knife” This is a stock brokers phrase telling investors not to try to buy “bargains” when the market is in a free fall. In order to lower your risks, you let the market bottom out, even bounce once or twice before buying. Just don’t think you can catch that falling knife without getting hurt in the process.
That is a good question and the main reason is the amount of money required upfront before a bank will lend the finance for the rest of the property. As is advertised an seen on the media banks and traditional lenders will lend 80% and depending on the institute up to 100% on Residential Consultancy. This is because it is seen as less risky investment.
Commercial plots are much harder to look for and buy as compared to residential ones. The location for your business must be a prime one, the transportation should be such that your place of business is accessible and I should be financially viable. Once your money is given away for the purchase, it could a real hassle for you if the choice turns out to be the wrong one. To avoid all that, you must make sure that you do research on your plot, compare with others, ascertain the market rates and ensure that your location suits your business and company as well. A wrong choice could harm your business. So take your time, there is no hurry.
The first scenario and my own experience with relocating to a new area would have been avoided if a good plan was written. A good plan would have helped me to determine if moving to Las Vegas was worth it. It would have also helped me to prepare for the challenges living in a new city. So, before you move to your dream city, I suggest that you create a relocation plan.
These loans are per case basis and very flexible so there is a lot of space if the package works. It can be a set back if you are fresh to investing but luckily that can usually be offset with adequate cash reserves and a good plan of action.
We referred him to a hard money lender that provided the cash by putting a blanket mortgage on two of his investment properties. He closed in 10 days, then refinanced the hard money out with a traditional bank refinance.
Pay a little more of premium to get back a lot of premium. If you have the financial capacity, pick a corner lot. Corner lot are usually in high demand and limited units because of the extra land. The corner lot should not be on the main road, where the traffic is heavy.
Measure the plot. This is important. Many property dealers exploit the trust you put in them. You select a plot and are content that is exactly what you will own after the purchase. But before the purchase, ascertain the size that you had specified. Keep visiting your plot location regularly so that nobody can rob you of even an inch of your property.