Create your own Lending Instrument to fit your needs

[Ryan Hamaker]

Hello Bigger Pockets Forum,

While I was in my MSIRE program a few years ago, I had a professor who asked us to custom design a variety of lending/ financing options that would best suit both the borrower and lender landscape.  This class always intrigued me because RE Investing variables (type of asset, period of ownership, leases, structure of ownership, ETC) can vary dramatically while lending options tend to be more rigid and inflexible in nature.

As an RE Investor or as a RE Lender, what lending products or changes in lending products can you think of that would change RE Investing for the better.  How would custom design your lending product.

Keep these ideas in mind:

1)  Does your idea benefit both the investor or the lender or both.

2)  Be sure to include terms, rates and any permanent or temporary changes in the loan structure.

3)  Would your idea be better for a traditional bank to adopt or a private lender or something in between.

4)  Don't allow current lending options to influence your creative process here.  

5) What type of RE investment would benefit from your idea? Long term SFR, SFR flips, Multifamily long term hold, 5 year forced appreciation (similar to RE syndications), Commercial properties including retail, office, warehouse or special use, etc.

If you have a creative financing idea, share it!