Creative Real Estate Deals

[Abigail King]

Hi everybody! What is everyone's favorite form of creative financing (seller finance, subto, etc..) ? Would love to hear how you got the deal going and how it ended up closing!! :) 

[Michael Carbonare]

Hi, Abigail.  Years ago I needed cash to get started.  Another investor told me about assignments, specifically cooperative assignments.  They proved to be a low risk, low cash requirement to get some traction.  The assignment fees then enabled me to roll into other strategies, buy and hold, fix and flip.  

[Tom S.]

@Abigail King  I started with a seller finance, $80k, 10% down ($8K) + $1k in closing costs.

Put about $40k in rehab in it.  Mostly on trade accounts with local businesses for the materials, some business credit cards, some of the contractors were OK with waiting 30 days for payment.  So minimal impact to credit during the rehab process.

It appraised for $173k after rehab, refinanced and paid everyone off including the seller, and walked with cash to do my next deal :)

[Andrew Postell]

@Abigail King I mean, I wouldn't classify it as "creative financing" as much but my favorite strategy has been the BRRRR Method for many years. It provides the least amount out of pocket to acquire properties. I'm a millionaire from it. It still works for me to this day. No right or wrong answer here of course but I'm a fan of it.

[Chris Seveney]

Quote from @Abigail King:

Hi everybody! What is everyone's favorite form of creative financing (seller finance, subto, etc..) ? Would love to hear how you got the deal going and how it ended up closing!! :) 

We love defaulted note investing - you own nothing but are in control and can exit through the property or the borrower. if you do take a property back you can sell it outright, seller finance it, rent it or BRRR it.