Chapter 03
Creative Financing & Negotiation
Now, with all this mention of maximizing profits and minimizing costs, you’re probably thinking of the best ways to own a property without burning through your cash.
Depending on the amount of equity a seller has in their property, their individual personal circumstances and amount of time they need to close, you can utilize one of these creative financing techniques:
Think of this as taking over someone else’s mortgage. The deed is yours, but the loan stays in the seller’s name. So, while you control the property and reap the benefits, you don’t have to take out a traditional loan in your name. Clever, right? It’s the stealth approach. You’re basically telling the seller, “Hey, let me take that property burden off your hands.” And who doesn’t love being the hero?
So, next time you’re eyeing a property and thinking about how to finance it, remember that if you can underwrite and comp a property, you can finance it creatively and put a lot less skin in the game because creative financing allows you to secure deals without using your own cash, running your credit and without ever having done it before.
Creative financing can be a tool for many that just might be the tool that takes a real estate empire to the next level. You can see a case study of how to do that below.
After all, why settle for conventional when you can go creative and maximize those profits? But you can only use creative financing if you understand how it works.
Because remember, in this game, knowledge isn’t just power – it’s profit.