The starting point for any prospective deal is financing. How you plan on financing the transaction dictates just about everything else you do. Financing determines your offer price, the closing date, contract contingencies and earnest money deposited. On some deals, the financing option is cut and dry. On others, there are a handful of options that make sense but choosing the right one is critical. A slight change in a long-term interest rate or a percentage change in the potential profits can end up costing you thousands of dollars. Before you get too far with a prospective deal you need to know how you plan on financing it. Here are the five
main financing options, and when you should use each of them.
Choosing the right financing for your transaction can make all the difference in your bottom line. Use these options as a guide on your next deal.