Successful borrowing could, in fact, be the only difference between a successful entrepreneur and an entrepreneur that would soon be out of business.
Unfortunately, the art of successful borrowing cannot be learned in a class.
Successful borrowers are smart with their investments and strive to have better relationships with their lenders.
Here are some common traits that are found in successful borrower:
Extensive planning is the number one trait of successful borrowers. The planning includes project outline, milestones, timelines and most importantly, the exit strategy.
A detailed plan helps borrowers know exactly how much they need and how they’re going to pay for it. Since hard money lenders do not consider credit rating, they are concerned about the exit strategy.
The more details in the plan, the easier it will for the borrower to secure funding.
Successful borrowers have a habit of keeping all their communication lines open, all the time. This includes lenders, financial advisors and the business community in general.
It is not uncommon for businesses to find themselves in a tight spot and borrowers are always on the lookout for any the help they can get. Any accurate information, a deal or a possibility of additional financing can save businesses which are inches away from bankruptcy.
Successful borrowers are also not afraid to renegotiate the loan terms when the situations have changed.
Focusing on Outcomes
Successful borrowers always have a particular outcome in mind when applying for a hard money loan. They do not let their emotions get in their way.
They have a particular objective and know that a hard money loan can help them achieve it.
Successful borrowers know how to pitch their ideas to the lenders perfectly.
They are up-front when presenting their ideas. Although commercial lenders do not have rules, they do not want any uncertainty on the part of the borrower and aren’t comfortable to deal with borrowers who have ever-changing needs & wants.
They like borrowers who know what they are doing, know what could go wrong and have the audacity to stick to what they’ve planned.
Comparing loan and & no-loan scenario
Successful borrowers are great in comparing a loan scenario to a no-loan scenario, which helps them make an informed decision.
If the benefits of taking a loan are high, they do get a loan even at unreasonable rates rather than letting go of the opportunity.
We are one of the leading hard money lenders in the country and have worked with thousands of borrowers. We not only lend funds, but believe in developing successful relationships with investors and businessmen, thereby contributing to an investor-friendly economy.