Creative Financing 101 Pt.2

In my previous article titled "Creative Financing 101" I gave 10 creative financing strategies that you can use in today markets. If you are open minded to unique and creative forms of real estate it will benefit you and your company immensely. I have seen to many times investors get frustrated because deals don't come there way or they can't close a transaction. My advice is, don't give up, in some of the worst circumstances and situations is where I have learned the most. The business can make you feel like your riding a roller coaster sometimes, but what I have observed from my mentors is the people that truly make it big in real estate investing are the ones that have creative minds and perserver the most. So my goal for writing these two article was to help you open your minds to the endless possibilities in Real Estate investing. Now drum roll please, here are the last 10 creative financing techniques that you can use to complete more deals. Please as always use discretion and a little common sense when applying these. 11. 1031 exchange - when the buyer exchanges a property already owned for a property of equal or MORE value, can include profits from a sale of a property, tax benefit
12. Joint venture with seller - when the seller keeps some or all of his equity in the deal for some sort of financial incentive from the transaction
13. Equity Partnership - when the buyer brings a partner in based on equity sharing (some of the equity)
14. Cashing Out - the buyer pays cash for the property with the intent of financing the deal in a short while to take their cash out.
15. Lease with Option to buy - the buyer leases the property with the right to buy it at a future date, can buy and sell this way
16. Cash flow mortgage - buyer negotiates monthly mortgage payments to equal cash flow from rental income
17. Subordination - buyer negotiates owner financing, a mortgage note that will require the seller to take a secondary position to future financing
18. Blanket Mortgage - when one or more properties are encumbered by the same loan and mortgage KEY POINT - predetermine the release figure from each property
19. Alternate goodie method - when the buyer buys or barters something else of value as part of the sales price of the property.
20. Straight Option - when the buyer options the property for a certain period of time at a certain price, notarize the contract, AM, record at the county clerks office, clouding the title
----------If you have any questions regarding any of these strategies or you just want to chat about real estate investing send me an email at scott@jaxhomebuy.com. I enjoy meeting like-minded people. God bless