To make money in the property business you need money. Usually more money than the aspiring property entrepreneur has. As such one of the great business opportunities in property is providing cash.

There are a number of different ways in which you can help a property business to access cash.

The Investor

An investor is by their very nature a wealth individual who will provide the capital for a project in return for a share of the profit (but usually not the loss). Typically many investors will expect a return ranging from 1% interest per month up to 50% of the profit depending on the level of risk and the percentage of the capital they are providing.

The Introducer

Those starting out in the property business do not usually have access to a network of wealth investors. An introducer will typically introduce entrepreneurs that have an potentially profitable deal to investors that are likely to back it. Typically an introducer will expect a fee of around 1% of the loan value.

The Mortgage Broker

A mortgage broker is also an introducer, the difference being that they will normally be introducing high street lenders rather than private investors. Becoming a mortage broker is relatively easy if you’re only dealing with unregulated business (buy-to-let and commercial). As a mortgage broker you will introduce the entrepreneur to the mortgage lenders allowing them to get a buy-to-let or commercial mortgage. Typically you’ll charge a fee to the entrepreneur and will recieved a commission from the lenders making you between 1 and 2% of the value of the loan. If you become a fully qualified mortgage broker you can also handled regulated business (residential mortgages) which can also be useful to allow the budding property entrepreneur to release some of the equity in their home to pursue their property business.

This post is part of my property business opportunities series.

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