You may see ads promising -

- Self-Liquidating "LOANS!" - Investment Capital Overnight! - Your "LOAN" has been Approved! - BORROW Money And Never Pay Back! - etc.

A self-liquidating "LOAN" is fiction. You will never get a loan that you will never have to pay back from anybody. You need to be very careful when you are presented with opportunity to get "money for nothing!"

A true, self liquidating "LOAN", standing on it's own, is a pipe dream - it's perpetual motion. A loan that pays itself off is of NO benefit to lender - so, Why Would They Do It? The answer is simple - they WON'T!

Con men typically ask for up-front fees to get people a Self-Liquidating Loan. "Your "Loan" Has Been Approved" is their typical ploy. Since there is NO such thing as a Self-Liquidating "Loan" this should be a tip off that all they want is your money and you will never see such a "LOAN"! Remember money MUST come first, and if they can't prove to you how money will come first to create such a transaction, you will lose any money you pay to these con men.

Also beware of con men that do not charge front fees but want to see if you qualify for such a "LOAN", then notifies you later that you have been approved for a "Loan" and want you to pay points, closing costs, advance interest fees, etc.

But there is a way to use this CONCEPT!

In a Self-Liquidating Loan CONCEPT there are no such expenses! The money comes first, then transaction is created using a Roll Account (Compensating Balance)!

A Self-Liquidating loan actually does NOT exist. I know you see several ads in many publications advertising such a loan. There has been a mystique about these loans. Many people believe that to get a so-called Self Liquidating, Loan one only needs to apply and like magic, there it is! A multi-million dollar loan with money pouring out of envelope! Not so - but Self-Liquidating Loan concept is done every day and you can learn how!

Again, these Criteria are ranked in what has (over years) become accepted as being their relative importance, for making a sound property investment.

1. Tenant Calibre & Lease Term

By themselves, these two Criteria could prove to be two most important to you - if you intend to achieve any of your investment objectives.

Ideally, what you'll look for is a strong corporate (or government) tenant - with a minimum of a 5-year lease term. With that in place, you're well on your way to making a successful investment.

2. Recent Construction & Flexible Design

Generally, whenever a property has been recently constructed, it means it will have ongoing appeal to subsequent tenants. And again, this will help to ensure that many of your objectives are met.

And it also means you'll start to enjoy significant Tax Benefits.

Likewise, a Flexible Design means that you are not left with an inefficient floor layout, if your principal tenant were to vacate at end of lease term.

In other words, you'll have an easily adaptable layout - which will allow you to draw from a wide market, when re-letting is required. At that point, you can enjoy further Tax Benefits - from depreciating any of refurbishment works that may be required.

3. Lease Structure & Absence of Competition

Lease Structure relates to things like ... frequency and method of your rent reviews, who pays operating costs, and to what degree a tenant is responsible for total building maintenance ... all of which will impact upon many of your objectives.

Absence of Competition relates to how many similar properties there are, nearby to yours. This determines whether market could become over-saturated - which may affect your return from property, or make it difficult when it comes to re-letting.

4. Good Position & Emerging Trends

All other things being equal ... better Position, better your property will perform. But, as you've seen from earlier criteria, Position alone should not be your sole determinant.

In recent eBulletins, you've already analysed some of investment opportunities emerging through demographic trends. But equally, new trends are emerging in relation to construction, design, energy conservation, security, lift technology, automation and so on.

All of which can dramatically improve performance of any properties you may already own; plus enhance under-performing properties you may be looking to acquire or develop.