Financing my First Deal

[Stetson Giralmo]

Hello Everyone, I am venturing out on my first deal so any advice is greatly appreciated. Theres a lot of steps but the first is financing so I can even acquire my first property. Im 21 and my funds are low and Im far from 2yr work history, On the bright side I have the possible partnership of my parents that could fill those voids. Please help with any advice on creative financing, looking to get into turnkey properties. Thanks so much BP community!

-Stetson G

[Deneuve Brutus]

@Stetson Giralmo Congratulations on making the decision to get your first deal! Creative financing is dependent on what the seller is willing to work with since you are the buyer. You can use anything, I have read stories where a guy used his time as a down payment since the most important thing to the seller was that he moved out of his current house into the new one as soon as possible. This was an assumption of loans, there is a strategy for it.

Your parents may be willing to put a HELOC or second mortgage on their home if they have equity. Always ask the seller will they finance, basically you pay them instead of getting a traditional loan. Your parents can transfer funds to a Self-Directed IRA with their 401k and/or IRA and finance your venture that way as well.

You may not want to deal with Hard Money Lenders (HML) due to your parents would guarantee and they essentially are acting as private lenders for you. Which is a way better deal.

You can always find someone who is doing deals in turnkey properties in your area and partner with them. Provide value to them such as doing paperwork, sweat equity, etc...

Blogs:

3 Creative ways to Finance Real Estate

Creative Financing Blog From BP

There are many books on creative financing below are a few I've read and know about.

• The Book on Investing in Real Estate with No (and Low) Money Down by Brandon Turner
• Creative Seller Financing: How to Use Seller Financing to Buy or Sell Any Real Estate by Chuck Sutherland 
• Creative Down Payments: How to Use Almost Anything as a Down Payment to Buy Real Estate by Chuck Sutherland Advanced  
• Creative Real Estate Financing: Breakthrough Success Strategies by Chuck Sutherland