Forget banks, try dragons for a property investment loan

photo credit: kevindooley

Mortgage lending is now 36 per cent lower in the UK than it was in August 2007, which pretty much confirms that banks are getting tighter than Scrooge in a goldmine. “Lenders are uncertain about future sources of funding and the cost of funding” the Council of Mortgage Lenders explains.

Where has all the money gone?

This begs the question – if banks won’t lend an investor money to buy the cheaper properties now on the market, where can someone go to get their hands on some quick cash? Perhaps the UK’s major home loan lenders could set up a Dragon’s Den-style panel. For anyone who has not seen this television show, it basically involves a panel of rich investors listening to pitches from entrepreneurs who are hell-bent on making a packet from their latest scheme. In the US they call it ‘American Inventor’.

In short, half of the ideas are completely ludicrous – “I’m looking for a £200,000 stake in my bath plug holder maker company in return for three per cent equity”. The entertainment comes in watching the dragons tear the more idiotic plans to shreds.

Mortgage trial by TV

In fact, why not instead just televise every meeting a property investor or conventional buyer has with their bank manager. We can then hurl things at the TV and sneer at the ‘dragons’ when they turn the appeals down. I can imagine many a mortgage meeting would make great viewing at the moment.

“So can I have the £200,000?”

“No”

“Why, don’t you like the business plan?”

“Well, we haven’t actually got any money to lend anymore.”

“Why?”

“Since last week, everyone keeps their cash under their mattresses. Go and ask some of them.”

[tags]real estate,real estate investing,property,property investment[/tags]