Breaking News Nigeria, Latest Nigerian News
  • Home
  • News
    • Business
    • Politics
    • Science
    • World
    NewsShow More
    soludo
    Nigeria in Brief: Soludo signs a 260billion Naira budget into law as FG denies N89trn stamp duty scam
    December 14, 2022
    cbn
    Nigeria in Brief: CBN shares 9 trillion Naira to combat food inflation, others
    December 13, 2022
    atiku
    Nigeria in Brief: Atiku denies the existence of Sambisa Forest, and other trending news
    December 12, 2022
    INEC
    Nigeria in Brief: INEC reveals a top secret, and other trending news today
    December 11, 2022
    emefiele
    Nigeria in Brief: Reps and Senate to grill Emefiele, and other trending news in Nigeria
    December 9, 2022
  • Politics
    • Politics Featured Section
    • Politics Story for You
    PoliticsShow More
    soludo
    Nigeria in Brief: Soludo signs a 260billion Naira budget into law as FG denies N89trn stamp duty scam
    December 14, 2022
    atiku
    Nigeria in Brief: Atiku denies the existence of Sambisa Forest, and other trending news
    December 12, 2022
    INEC
    Nigeria in Brief: INEC reveals a top secret, and other trending news today
    December 11, 2022
    emefiele
    Nigeria in Brief: Reps and Senate to grill Emefiele, and other trending news in Nigeria
    December 9, 2022
    ex-president goodluck Jonathan's car accident
    Why I will never be Nigeria’s president again – Jonathan
    December 8, 2022
  • Business
    • Business Editor’s Pick
    • Business Featured Section
    • Business Story for You
  • SMARTKOBO
  • Entertainment
    • SportsNews
    EntertainmentShow More
    INEC
    Nigeria in Brief: INEC reveals a top secret, and other trending news today
    December 11, 2022
    troll
    Netflix and chill: 10 must-watch movies on Netflix right now
    December 10, 2022
    d'banj
    D’banj arrested, detained for allegedly stealing N-Power money
    December 7, 2022
    national-sports-festival-stephen-keshi-stadium
    Six states fight to host 2024 National Sports Festival after Delta
    December 7, 2022
    samm-okposo
    Singer, Sammie Okposo to be buried Dec 15, see burial arrangement
    December 5, 2022
  • #2023Elections
Reading: REAL ESTATE FUNDING: Improve your chances of getting approved with these 4 tips
Share
Notification Show More
Latest News
nigeria presidential election
Presidential Election: Nigerians face obvious choice in 2023. Will they take it?
January 16, 2023
Nigeria in Brief: Mercy Johnson reveals battle with cancer and other trending stories today
January 14, 2023
Nigeria in Brief: Lagos Blue Rail Line ready for operations, Peter Obi leads in fresh poll
December 22, 2022
cbn
CBN bows to pressure, increases weekly cash withdrawal limit to N500k
December 21, 2022
JAMB releases registration date for UTME 2023
December 21, 2022
Aa
Aa
Breaking News Nigeria, Latest Nigerian News
  • Home
  • News
    • Business
    • Politics
    • Science
    • World
  • Politics
    • Politics Featured Section
    • Politics Story for You
  • Business
    • Business Editor’s Pick
    • Business Featured Section
    • Business Story for You
  • SMARTKOBO
  • Entertainment
    • SportsNews
  • #2023Elections
Have an existing account? Sign In
Follow US
  • Home
  • News
  • Politics
  • Business
  • SMARTKOBO
  • Entertainment
  • #2023Elections
© 2022 Nigeria Today News. All Rights Reserved.
Breaking News Nigeria, Latest Nigerian News > SmartKobo > REAL ESTATE FUNDING: Improve your chances of getting approved with these 4 tips
SmartKobo

REAL ESTATE FUNDING: Improve your chances of getting approved with these 4 tips

Lerato Lekena
Lerato Lekena September 30, 2021
Updated 2021/09/30 at 11:33 AM
Share
real estate funding
SHARE

Real estate funding tips

Do you need funding for your real estate project?

Real estate investing is capital intensive – we all can agree on this. But even more so, are the returns that can be gotten from real estate investing when bought and managed right.

Barely 3 out of 10 institutional financiers will give their funds for this and thus it gives the impression that there is no hope for getting it funded.

The truth however is that in as much as real estate is a viable wealth creation tool in the hands of diligent and committed investors, there are high risks with it as an institutional financier.

- Advertisement -

Strategically speaking, seeking funding might not be in your best interest all the time and if you can get them funded internally and through other means to include Mortgage financing, Building fund, Cooperative contributions or Personal financing then you might have to get support from an institution or group.

RELATED STORIES

  • How to know if your real estate investment is going to be viable
  • How a smart mom doubled her returns in a real estate deal without spending her entire budget
  • How to create capital to invest in real estate

Very important to note too is that getting financing for real estate is touchy mostly because there are so many moving parts to include and be added to risks of the construction itself.

With so many checklists and risk mitigations needed for real estate, here are some of the easier reasons why your request for real estate financing will not be approved.

- Advertisement -
  1. Ownership (of the asset or supply chain) is not assured: especially in construction or refurbishment of a property, as the finance seeker it is your prerogative to understand and have enough knowledge to protect the ownership of the property and project in general. Let’s take for example an initiator who is looking to fund the refurbishment of a building maybe with the intention to gentrify the environment or just to refurb the unit. If you cannot show a high level of understanding the process and what the potential risks are, your financiers will not have the comfort needed to release funds to you.
  • Opportunity viability: most often, developers and project owners get misguided by people cheering on their initiative and forget that not all of those cheerleaders would commit to the dream of subscribing to it. It’s in a similar way that property investors analyze the options they want to invest in using themselves or counterparts as the baseline for defining that target audience.

A financier will need to see deeper than the surface where you have gained awareness and an affinity for the project but actual subscribers who have shown interest with a commitment of sorts.

  • Team composition with required skills: no man, committee or country is an island. Though your front line panel are asking all the questions and giving you pointers of how they are thinking chances are that they are not the final decision makers for the financing – they are just the custodians.

The profile qualifications of yourself and your team will be a considerable factor for whether you will be approved or not. Expect that background checks and inquires will be made into you, your business and past work-life – if there is something notable enough to raise a flag, then it’s most likely to be a No from them. In the event that it’s not and someone higher up enough can convince the decision to give you a chance then you will need to adapt your operating systems to imbibe those measures.

  • Profitability of the project: it’s all about the money – financing is done by people who are largely capitalists who know that their money will make more money for them.

So before you go looking for financing, you will need to be 300% sure that the chances of making a profit are cast in stone. Now, this doesn’t mean that you just need to make a profit for yourself, or to pay back the financing; unless you are a charity organization you need to also make a profit for yourself and your business organization.

This is where the importance of sustainability comes into play. The more sustainable that you are the higher the chances that the financiers will want to work with you on an ongoing basis. One thing that financiers enjoy more than making money is saving time and money on initiating an investment cycle.

If they can be assured that your proposal is good and will work, there will be the silent consideration of ‘Can we keep working with this person?’
If the answer is yes then you are higher guaranteed to get approved, as it means they will have one less reason to rerun financial checks on you and your team’s profile and they can focus on validating the projects only.

Now that you have read this concluding article in the series of How to get financing for your real estate project – do you see how all the parts tie together?

As much as we want to look at real estate investing as a stand-alone cash multiplying model, we will be doing ourselves a huge disservice by that. Real estate investing is a circle or network of many moving parts – all of which come together to create wealth, offer opportunities for passive income and with a well-planned strategy can be the source of your retirement fund.

Thank you for continuing to read the weekly articles.

Please help us reach more people by sharing them with friends and family who might be interested or able to learn from them.

You may also download her free ebook on real estate here

I also appreciate hearing back from you, so you can either comment below or click to email me here.


TAGGED: real estate funding
Lerato Lekena September 30, 2021
Share this Article
Facebook TwitterEmail Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You Might Also Like

co-investment summit
BusinessBusiness Story for YouSmartKobo

Maiden edition of 2022 real estate co-investment summit kicks off today

December 8, 2022
real estate
Breaking NewsSmartKobo

How to beat inflation through real estate investing

July 26, 2022
real estate investing
Breaking NewsSmartKobo

Real Estate Investing Tips: Knowing when to buy, keep or resell

July 8, 2022
off-plan investing
SmartKobo

Leveraging off-plan investing for wealth creation in real estate

May 10, 2022
nigeria today news logo
Nigeria Today News logo

Subscribe to our newsletter

Please wait...
Want to be notified when our article is published? Enter your email address and name below to be the first to know.

Most Recent News

soludo
Nigeria in Brief: Soludo signs a 260billion Naira budget into law as FG denies N89trn stamp duty scam
Breaking News Business Politics December 14, 2022
cbn
Nigeria in Brief: CBN shares 9 trillion Naira to combat food inflation, others
Breaking News Business December 13, 2022
atiku
Nigeria in Brief: Atiku denies the existence of Sambisa Forest, and other trending news
Breaking News Politics December 12, 2022
INEC
Nigeria in Brief: INEC reveals a top secret, and other trending news today
Breaking News Entertainment Politics Sports December 11, 2022
emefiele
Nigeria in Brief: Reps and Senate to grill Emefiele, and other trending news in Nigeria
Breaking News Politics December 9, 2022

Most Viewed Posts

  • World cup qualifiers: See the full list of 30 players invited to represent Nigeria (1,569)
  • WAWU! Flavour marries first baby mama Sandra Okagbue (1,065)
  • BREAKING! Flutterwave shuts down Barter virtual dollar card services, to terminate all cards by July 17 (961)
  • 10 smart businesses you can start in Nigeria today with zero capital and make money immediately (Part 1) (892)
  • Oyo South senatorial primaries abandoned due to irregularities (722)

Stay Connected

Facebook Like
Twitter Follow
Pinterest Pin
Instagram Follow

© 2022 Nigeria Today News. All Rights Reserved.

  • About
  • Privacy & Policy
  • Terms
  • Contact
Please wait...

Subscribe to our Nigeria Today News

Want to be notified when our article is published? Enter your email address below to be the first to know.
SUBSCRIBE

Removed from reading list

Undo
AdBlock Detected
Our site is an advertising supported site. Please whitelist to support our site.
Okay, I'll Whitelist
Welcome Back!

Sign in to your account

Register Lost your password?