Ways to Fund Your
Real Estate Deals
The majority of people only know how to do traaditional
financing like going to a bank. There’s nothing wrong
with that, per se, other than you are very limited. A few
years ago, you could get away with doing 20/80 loans when
banks had real liberal lending, but that's a thing of the
past. You’re going to have to have a down payment,
you’re going to have to qualify, show proof of income
and they’re tightening up like they should have been
doing all along, so you do want to look at more creative
options.
In fact, even if you do have money to work with, you’re
better off using somebody else’s, because if you’re
working with banks, you’re eventually going to run
out. Unless you’re getting a substantial cash flow
out of each property loan, it will start working against
your debt to income ratio. So you’re better off, even
if you’ve got money to work with, being creative or
selling a contract, for example. It doesn’t cost anything
to get the property under contract, then you’re able
to assign it
to another person that will pick it up. Sure they’ll
probably make more profit, but you’ll get that assignment
fee, and you don’t have the risk.
Also there are options such as seller financing where you
have the ability to negotiate whatever terms are going to
work for both of you. You’ve also got private lenders,
there are also some of these options like subject
to financing, seller
financing, mortgage brokers even still have connections
for being able to do things as well. Equity as collateral,
former businesses, IRAs, 401ks, bartering, trading services,
and a combination of some of these strategies work as well.
So if you’re looking at actually buying a property
and holding it, then you’ll be looking at some of
these other options as opposed to a bank, but again, you
also have the strategies that you’re not actually
taking ownership of the property, you don’t have to
worry about getting a loan or having to come up with money
or a down payment.
For an interview that discusses the option available for
today, go to: starting
a real estate investing business.
For our in-depth real estate investing system with all the
specific
strategies, tools, forms, etc. go to:
http://creativerealestatehelp.com/index.php#program
We look forward to helping you achieve your financial goals!
To your success,
Matthew Sorensen
CreativeRealEstateHelp.com
http://www.creativerealestatehelp.com
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