The bank will rarely, if ever – give us any money if we tell them we want to invest it into a business or the stock market. There are some exceptions to this, but for the most part it is very difficult, almost impossible – banks simply do not want to because of the level or risk involved in these 2 asset classes. A property, however – if you tell the bank that you want to invest into a property, as long as you meet the qualification requirements, they will give you 80% of the value of the property, as long as the property is anywhere in Canada. But how do really banks make lending decisions?
How Banks Make Decisions On Where To Put Their Money
Banks – especially here in Canada- are very strong, very profitable. Every three months when you look at their bottom line, they are earning profits in the billions of dollars. We want to study the bank and how the bank makes investment decisions, because they have a proven track record of making good decisions when it comes to where to put their money.
We want to understand what banks are doing, so that we can do the same thing, in essence. For most of us average people we really only have 3 places where we can put our money, if our goal is to have it grow and to earn some income from it. A simple savings instrument is not going to cut it, we are either going to put it into a business of our own, or invest it into other businesses through the stock market, or put it into real estate.
The bank will rarely, if ever – give us any money if we tell them we want to invest it into a business or the stock market. There are some exceptions to this, but for the most part it is very difficult, almost impossible – banks simply do not want to because of the level or risk involved in these 2 asset classes.
A property, however – if you tell the bank that you want to invest into a property, as long as you meet the qualification requirements, they will give you 80% of the value of the property, as long as the property is anywhere in Canada.
The bank will tell you to put your money into a savings instrument or the stock market, but when it comes to their money, they put the bulk of it towards real estate investments.
Why do you think that is? We go over this in more detail in our One Property Away Webinar, sign up for it here or feel free to reach out for your no obligation consultation on (778) 233-2377.
