Is there a best time to borrow money?
Well, according to George H. Ross, author of the book, Trump Strategies for Real Estate: Billionaire Lessons for the Small Investor
And, of course – as usual – the answer is obvious.
We all know the answer. We all knew it before he ever wrote the book. But, like a lot of simple answers – obvious answers – it seems to go right past most people.
I’m guilty of this “knowledge” crime myself. Sometimes I look for the complicated answer first, especially when the situation gets a bit tense.
But, why is that? Why is it we sometimes look to complicate things?
I guess it’s just part of human nature.
So, when is the best time to borrow money? Have you figured it out yet?
Here’s the answer according to George H. Ross.
… most new investors try to borrow money only when they need it. That’s a mistake. It’s when you don’t need money that the banks are most inclined to give you a loan!
So, the answer is not earth shattering at all. It’s so simple. George is telling us what we already knew.
The best time to borrow money is WHEN YOU DON’T NEED IT!
George goes on to explain this simple concept further …
When your financial position is strong, their (the lender) risk is lower and you are an attractive borrower. When you really need a loan, the lender will ask you why you need it and then reach their own assessment of the reason you give. Don’t let the banks do this. Don’t let the banks make business decisions for you; their business is lending money not making real estate deals. They are conservative by nature. Real estate investors are risk takers by choice.
So, there you have it. The secrets out. Tell all your investor friends!
For more George H Ross ideas you may want to read, “How do you protect yourself against a thief?”