In the current environment of mortgage meltdowns and the San Diego real estate credit crunch, investors for San Diego condos need lenders. Chances are the banks are tightening up their lending practices to reduce their risk and find reliable customers. When investing in Downtown San Diego condos there are some considerations to take in when going to banks.
Every transaction hinges on what bankers call the Four Cs: credibility, collateral, capital and conditions.
Credibility In the finance world, relationships rule. A borrowers credibility in the eyes of a lender has as much to do with personal traits and reputation in the community as it does with credit scores and tax returns. Having your information properly organized can help you get a faster result.
Banks in and around San Diego want to protect their investments by establishing your hard assets as collateral.
Collateral can include stocks, bonds, land and equipment among other things. A carefully managed credit line can help you maintain the capital necessary to make your next investment.
Capital refers to net worth total assets minus total liabilities and often, borrowers have significantly greater net worth than collateral that they are able or willing to pledge. Some sources of capital, such as personal property or personal income from another source, may not be considered collateral.
As far as conditions go, transparency is an excellent policy when meeting with lenders. Honesty and detailed records can help give you an edge when you have blemishes on your credit report; and you will need to explain everything in detail so its best to be prepared.
Small business Association loans are also a viable option, but generally require 2- 4% of the loan amount up front. Federal rate cuts may loosen the strings to get more out of lenders, but in the current position of the economy, these factors will be under even more scrutiny than they traditionally have.
For further information on any Downtown San Diego Condos contact:
Gregg Neuman
1-800-221-2210