Unlock Funding: The Capital Raising Blueprint

A Detailed Checklist for Raising Capital

1. Understand Mortgage Options

  • Identify if a fixed-rate or adjustable-rate mortgage suits your needs.
  • Consider hybrid options that combine both fixed and adjustable rates.

2. Evaluate Fixed-rate Mortgages

  • Determine if the certainty of a fixed-rate mortgage aligns with your investment strategy.
  • Assess if you’re comfortable with potentially higher rates for long-term certainty.
  • Analyze cash flow challenges in early property ownership stages.

3. Consider Adjustable-rate Mortgages (ARMs)

  • Evaluate if starting with a lower rate (compared to fixed-rate) is beneficial.
  • Understand the implications of rate changes over time.

4. Investigate Mortgage Features

  • Examine the start rate and future interest rates for ARMs.
  • Look into indexes and margins that influence ARM rates.
  • Understand the adjustment caps and lifetime caps for ARMs.

5. Avoid Negative Amortization ARMs

  • Ensure your mortgage doesn’t lead to an increasing loan balance over time.

6. Review Other Common Fees

  • Check for application fees, credit report charges, and appraisal fees.
  • Inquire about environmental assessments and third-party inspection fees.
  • Request a detailed summary of all fees and charges in writing.

7. Choosing the Right Mortgage Rate Type

  • Assess your financial risk tolerance.
  • Determine your ability to handle payment fluctuations.


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8. Analyze the Loan Term

  • Choose between short-term and long-term mortgages based on your investment horizon.
  • Consider a 15-year vs. a 30-year mortgage and its impact on cash flow and investment goals.

9. Consider Borrowing Against Home Equity

  • Evaluate if home equity loans or HELOCs are a viable option for raising capital.

10. Explore Seller-Financed Loans

  • Investigate if the property seller offers financing options.
  • Analyze terms and risks associated with seller financing.

11. Be Cautious with Special Loan Types

  • Avoid balloon loans and interest-only loans unless absolutely necessary.
  • Understand the implications of recourse and nonrecourse loans.
  • Assess the need for loan guarantees and their impact on your liability.

12. Finalize Your Mortgage Decision

  • Choose the mortgage type that aligns with your investment strategy, cash flow, and risk tolerance.
  • Ensure all terms are clearly understood and beneficial for your long-term investment goals.

13. Legal and Tax Considerations

  • Consult with a real estate attorney or financial advisor for legal and tax implications.

14. Securing the Best Mortgage Terms

  • Shop around for mortgages to find the best deal.
  • Utilize referrals to find reputable lenders.
  • Consider using a mortgage broker for challenging loans or less than stellar credit.
  • Understand the role and fees of a mortgage broker.
  • Research online mortgage options.
  • Be prepared to solve potential loan predicaments, such as credit issues or low appraisals.

15. Prepare for Mortgage Application

  • Ensure your credit report is accurate and reflects your creditworthiness.
  • Have your financial documentation organized and ready.
  • Be upfront about any potential issues that might affect loan approval.

16. Negotiate Mortgage Terms

  • Don’t hesitate to negotiate rates, points, and broker commissions.
  • Compare offers from different lenders for the best deal.

17. Closing the Deal

  • Ensure all deadlines are met for loan application and property purchase.
  • Work with brokers or agents to streamline the closing process.


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