Financing your property

6 Replies

Hello Bpers and a HAPPY NEW YEAR TO ALL OF YOU :)

My name is Dineo From South Africa .

Please  assist me with something here , i have been reading about ways of financing your first deal and mostly what i noticed was that the websites that are on here are mostly American companies , i just wanted to know if they do fund investment outside of the US and if there are nay companies that you guys know of in South Africa that i can maybe contact?

I have goggling for some in our country and all searches tell me of some cash loans and they don't seem  legit to me .

Regards

Dineo 

We buy all over the country. So I totally what is like trying to find mortgage companies. We have done very well finding the realtor first and than using all their contacts.

@Dineo Siziba  Hi Dineo, and Happy New Year to you too! I visited South Africa and loved it! I went great white shark diving in Gaansbai a few years ago, it was one of the most amazing trips I've ever been on.

This may be a silly question, but have you spoken with Standard Bank of South Africa? Or any national banks in JoBerg?

Hello Anglo 

i have not spoken to banks as yet because in most of these blogs(bigger pockets included) that i have been reading they discourage banks and encourage more private money lenders as they don't really look at your credit score and all .

Do you find them to be more helpful? can i use them as my first contact ?

@Dineo Siziba  Private lenders are great, but you still have to bring something to the table, whether its cash, experience, great deals that you can show will do well given your track history. 

Conventional loans can be a bit more straightforward and usually have slightly better interest rates. But the conventional banks are very standardized and have a set process in order to sell the mortgage later on. 

As an investor active in South Africa, Dineo, I would strongly suggest approaching the banks first for finance. As you probably know, there are lots of scammers out there offering cash loans, and all they are really after are your banking details. Also, private lenders will demand high interest and short repayment periods.  Regular banks at least offer you the protection of a proper financial assessment and can advise on whether you can actually afford to take on the debt you are considering. My advise is to check your credit rating through one of the local credit rating agencies, find out if there are any black marks against your record, and attend to those first.  Then approach the bank for the loan.  Many estate agents also offer a bond origination service whereby they apply to several banks on your behalf to get the best terms.

Anything goes..conventional financing, private money,hard money.Just be persistent to get your property deal financed

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