How to get your real estate project financed by the bank

showing only that they know nothing about how the credit system works today.

They feel satisfied, because they put their insights in the circle and receive the convinced applause of Mrs. Maria who did not have the mortgage to buy the apartment built by one of their competitors (which the work has financed and sold to a other customer).

In doing so, they vent themselves but condemn themselves to failure.

They have to change their mind; those who work in the real estate sector must evolve because the market has evolved.Famous caricature of Darwin appeared on La Petite Lune, 1879.

Why do they continue to remain firm on their convictions, to use the same language of the time, to reason with the same mental schemes as their father or when the market was pulling?

They should look around, read the boards of their city.

They will be able to read, right?

In every Italian city there are advertisements of banks that offer mortgages to customers, usually with the reflection of the larks of the interest rate (Mrs. Maria loves to read the interest rate because she thinks that is the cost of money).

Spread of the zero point, great deals and if you come to the BB (Banca Boccaloni) also amazing offers for the summer! – promise advertisements.

Then one focuses and in small law, with an asterisk at the bottom of the poster of many offers: “maximum financing value up to 50%”.

You will remember very well that less than ten years ago the banks financed up to 100% of the purchase: with the complacency of a somewhat extroverted accountant friend and inflating the quotes a bit with the architect friend a bit ‘saucy, someone did finance to customers well over 100%.

Or maybe I tell heresies?

The pages of IL SOLE 24 ORE are full of statistics of this sector, a real wound in the Italian financial market; for guilt not only of the adventurous entrepreneurs, but in most of the banks themselves who pretended not to see, to do business.

The banks also financed the expenses of the notary, the accountant’s fee and the parking lot.

Hannibal has passed the Alps

Do you know what happens in a period of crisis?

Without boring you with learned theories of economic Darwinism, nor with graphs on the curves of economic cycles, I briefly tell you what is foreseen in the first historical book of finance: the Holy Bible.

In it, it tells about the seven years of lean and fat cows.

In the downstream periods of an economic cycle, it is scientifically proven that only the best companies survive.

How to finance the company

To  meet current production costs (purchase of raw materials, energy costs, compensation to personnel, payment of suppliers, etc.) and to invest in medium and long-term growth  (machinery, real estate, shareholdings, etc.),  l the company  continuously requires financial resources .

The turnover on the sale of goods and services in the majority of cases it is not enough to offset the exits and then produce a profit, especially if there are half a significant investment. What then can the sources of coverage be? There are several ways in which a company can meet its financing needs:

  • the ‘ self-financing :  at year-end shareholders may decide not to divide the profits, ie the difference between revenues and costs incurred during the period of exercise, but to reinvest in the business;
  • increase in share capital : shareholders may decide to confer new shares or issue new shares to be placed on the market if necessary;
  • financing : the company can apply for loans to banks or other professional investors, paying periodic interest on the amounts lent, but also to directly address the public with the issue of bonds . In the latter case, the financing will come from the underwriters of the bonds, of which the company will become debtor in the manner and within the terms established in the offer.