Understanding banks is vital to ensuring success in the property sector.

Understanding banks is vital to ensuring success in the property sector.

Understanding banks is a topic that is often spoken about in the property space. To be successful in property you simply must understand:

  • How banks work
  • The different types of banks
  • Banks have their own unique strategies

The reason that this is crucial for you to understand is because banks ultimately can impact your success and financial aid. For example, you may visit one bank to get lending for a particular and they say no to you, because you do not have enough experience, you are a limited company, we only lend to sole traders, you have not got enough personal guarantee. Whatever the objection may be, you don’t want this to become your story.

The key thing to understand is that there are many banks and each bank has their own unique strategy that they follow. We are not limited to only high street banks such as Lloyd's, Santander and HSBC, there is something known as challenger banks.

Challenger banks are banks that exist specifically for the property space. These are banks that you don’t see on your typical high street, they sit in corporate offices and they lend explicitly to different property strategies. Each challenger bank has something completely different within their remit.

So, once you start understanding this and realising how banks actually work you can see how it opens you up to many more opportunities. For example, just because one bank has said no to you. It doesn’t mean that every bank will say no to you. If you don’t understand this, then your money story becomes’ I can’t get lending’ which most likely just isn’t true.

Throughout social media, there is a large stigma that says you won’t be able to get lending unless you have so much experience etc. The truth is that it is these people who do not understand the finance strategies of different banks.

Once you gain real clarity around banks then you will really begin to see the world open up. I spent a good few years in property before I really got to understand the banking world in depth and as soon as I did, it blew my mind open. It started to become clearer that actually with enough information and drive almost anything is possible.

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Top Tip
I really recommend that you connect with a good broker and to do this you again must understand that different brokers have different banks within their network, and you need the broker who can access the kind of lending that you ultimately need for your strategy.
To do this you need to get active, get on the phone and start connecting with brokers and actually asking them questions questioning what they specialise in and what type of lending they think you should be looking for.

If you understand the finance world and understand that everyone has a different strategy including you. Then you will understand that somewhere there is a mould that will fit you.

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