I was recently working with one of my clients to explore a variety of non-traditional methods to finance a property that he wanted to purchase. His need for alternative financing was driven by the fact his banker was not willing to fund the purchase with the favorable terms my client needed.
In most cases this purchase would have come to a screeching halt. However, my client decided to explore other financing options. And, I worked closely with him to identify the best strategies based upon his financial situation.
Fortunately, our efforts paid off. My client was able to complete his purchase thanks to a little research, a little creativity, and his can-do attitude.
Here’s my point:
During the above process I ran across a 14-page PDF report that I thought was particularly well done and potentially useful to many commercial and residential real estate buyers.
“Your Quickstart Guide to Getting Financing – 10 Creative Ways to Buy Real Estate in Today’s Market… With No Money Down” is written by Reggie Lal, an active real estate investor, wealth building coach, speaker, author and educator.
The report discusses these 10 alternative financing options:
♣ Owner Financing
♣ Double Closing
♣ Using Friends and Family Money
♣ Private Money
♣ Hard Money
♣ Sandwich Lease Option
♣ Use a Credit Partner
♣ Do an Equity Share with the Owner
Want a taste of the information provided? Here are the first few paragraphs of the report:
What is Creative financing: a term used widely amongst real estate investors to refer to non-traditional ways of financing real estate; in other words, financing techniques not commonly used by Real Estate Agents or Banks.
Why Creative Financing is a Necessary Tool:
One simple way to buy a home [or commercial property] is to pay all cash. However, the typical Investor is not in a position to do this, nor is this an efficient use of your Capital. Thus you must arrange for some type of financing of your purchase(s). Using Creative Financing techniques, you will be able to get there faster.
In this market – most Investors can afford only a modest down payment and are forced to secure the remainder of the purchase price by mortgage from some source other than the normal lending institutions (Banks). The problem is – in a down Real Estate Market: credit tightens, there is little liquidity in the market place, appraisals tend to come in lower and investor loans are limited and hard to obtain. This makes conventional Real Estate Financing nearly impossible for us Investors. That is why I took the time to write this article for you.
The general goal of creative financing is to purchase or finance a property, with the buyer/investor using as little of their own money as possible, otherwise known as leveraging, OPM (Other People’s Money). Yes – “it takes money to make money”. However it does not have to be your OWN MONEY! Using these techniques, an investor may be able to purchase multiple properties using little or none of their “own money” and still do multiple deals at the same time. Don’t’ worry – As you get better at buying – the money will find you.
The more money a property requires, the less attractive it is to us the Real Estate Investor. So as Investors/Buyers; we should not use all of our savings for the down payment or repairs, this deprives us capital for other deals and reserves to fall back on.
Click on this link to read the full report…