Creative Financing - Help!

[Mauricio Valverde]

Hello,

I am writing because I need some ideas on creative financing. I found a really good opportunity for me to get into the commercial RE world- an apartment building. My parents are motivated to help purchase I'm looking to find some ways. The webinar mentioned a section in the bigger pockets site for hard money lenders but are there other ways to find creative financing? I'm curious to know what you have run into or what definitely doesn't work. 

[Canesha Edwards]

@Mauricio Valverde

Hey Mauricio,

You have a couple of options in terms of financing.

1. Traditional financing: money is cheap. Depending on the property and your relationship with lenders. I wouldn’t over look this option.

2. Seller Financing: I would ask the seller if they would consider financing the property. You make the down payment and monthly payments to the seller. Some sellers are enticed by being able to sell the property but still having a consistent income. Find out the sellers motivation for selling.

3. Hard money: Hard money loans are always an option, this is why you should ensure your strategy is solid before taking a hard money loan. These loans come with high interest rates.

What’s the unit count on the property? Is it a class A property or class C? Any rehab needed?

Best,

Canesha