The Real Estate Encyclopedia
Alabama Real Estate For Sale-Marketing Your Finances
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Are your finances ready to handle becoming an investor in Alabama real estate?  If not, you need to get them in shape because the market is volatile and you must be financially ready. 

If you are ready to shop for Alabama real estate whether it is investing in houses, land or commercial properties first and foremost you must make sure your finances are in order.  I donít know if you are aware of this but the days of being leveraged out the wazoo but still be able to borrow money from a bank are probably gone forever.  With the new Federal Bank regulations that have taken effect, it has killed the speculative Alabama real estate market.  Regardless of what the President says the Feds are all in the banks business and are the main problem with lending. The rest of the problem is that banks are truly scared to loan money.  These things helped to cripple the Alabama Real Estate Market.  Someone has to be the bearer of bad news, so I guess itís me.  If the bank lending like it was isnít gone forever it is gone most certainly for several years.

What does it take to get a financial statement sound enough for banks to loan you money to buy Alabama Real Estate for Sale?  The banks take a look at liquidly pretty hard, actually much more than they used to.  A financial statement, balance sheet and at least three years tax returns is a minimum of what you will have to provide for the financial institution.  What is it going to take to get a yes from the lenders?  One thing for sure that can get you approved is CASH.  You might be expected to fork over 20% down or as much as 40 % down up front to purchase real estate for sale in Alabama.  Yes, I said 40%. That is a lot of money. 

What steps are necessary when looking for your first piece of Alabama Real Estate?  If you have a lot of credit card debt, that can stop the deal before it goes any further.  You should try to have less than 30% debt to available credit, or this could kill the deal right then and there.   Overall debt will also cause you not to get your loan.  Letís say you have a house loan, car loan, credit cards, tractor, and furniture .  A consolidation of all debt into one loan might be your answer.  I realize you are up to your eyeballs and you are not worried about this right now.  But if you will go ahead and analyze your credit right now it can save you heartache when you find that real estate for sale in Alabama that is just what you were looking for and then have to find out after the fact that you caní t get financing for it.  Thatís why just a little homework on the front side can really help you when you get ready to invest!


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