Creative Ways to Finance

[Elsa Viramonted]

What are some ways you have financed real estate purchases? 

[Bill Gulley]

Creative financing is the art of using cash and other assets to leverage the acquisition of a property or its benefits. 

When you look at creative financing in this light, you go beyond types of lenders, seller financing or cash purchases, the use of other assets.

As mentioned, you do need to recognize seller's motivations, understand personal finance well enough that you can make informed suggestions.

You can utilize just about any other asset, that has a determinable value, value must be found and agreed to in order to use it.

I've used stocks, bonds, other real estate equities, personal property like boats, vehicles even an airplane have been used, accounts receivables, existing leases or new leases can be pledged or cashed in, annuities, judgments, inventory and a & of sales have been used in some of my deals.

Anything of value, held now or to be received in the future, that is marketable can be a source for leveraging a transaction. 

IE: I haven't just done 100% seller financed deals but more like 125% SF deals with a seller tossing in the cash based on other pledges. That's getting creative! 

Sometimes you may not want the whole property, you just want the income that can be had by better utilization, just finance that use or right to control, leases and options, might be used and they can be much cheaper than buying the place. 

Don't just get stuck in the real estate finance ditch, learn the road and you can use any lane you need!   ;)