Post an example of your creative financing deal you've done

[Jay S.]

I would like to read an example of some of you guy's creative financing deal structuring you've put together with no &/or little of your own money down. 

I'm posting this forum to get a better understanding of how this is possible & ideas I can potentially use to structure my first & for learning purposes on future deals.

How many partners used?

Bank, private, or hard money or all 3?

What was your stake in the deal after using others money?

SFR or MFR?

Long term or for the short term?

Percentages divided?

Who was in 1st & who was in 2nd position?

Thanks in advance.

[Bill Gulley]

Already posted about doing a development using a non-profit, having the Housing Authority kiss the seller financed note on 850K who also donated cash to the project to pay me getting a tax benefit and setting up the note through a charitable remainder trust on a partitioned note providing multiple beneficiaries of the estate with income and of course the payments didn't begin until after completion and sales/rents hit a level to sustain 6 months payments, so I won't go into that one again. But it was zero dollars from me.

Won't go into financing beyond the scope of this site, selling tax` credits, bond financing, participations or discounting bonds or annuities....... 

Another was selling to a card dealer, we had a bit of a gap in the price and offer, he had less in a late model Pathfinder on his lot, so I took the SUV, I got some cash and a free vehicle.

Used boats the same way.

Used notes to trade for equity.

Took livestock after I had a buyer and the buyer pick up the livestock, I never saw them.

Another "system" was guaranteeing seller financed paper and leases, any default I step in and pick up the note/lease and I'm then buying the property or as an equipment lease, flipping it to an equipment buyer/lessor.

With that said, folks, you can't start thinking outside the box until you know what's inside the box.

You are really asking how can I buy without any money, many options are available but understand that not just anyone can start in what is truly innovative or creative without knowing how to buy with money, where you get it is a different matter.

Creative financing isn't getting an installment contract at 100% or even more without skills.

Land, labor, capital and entrepreneurship are the functions of economics, any three of land, labor or capital can be substituted to build a transaction but entrepreneurship is always applied. Less capital, more labor, less land, more labor, more capital less land or labor, no capital means more labor, land and management.

How do you do that, with an education, knowledge is power, what most here think is that knowledge can come in some 12 step program.....NOT!

Before you can be creative in financing you must first know conventional financing, there are rules and laws, you can't just dump out a box of ideas or agreements and expect something to work, you build the financing transactions just like you prepare a meal, one ingredient at a time ensuring each is added at the right time, just enough to provide the intended results while keeping within a legal and ethical framework.

You're never going to paint a master piece with a paint by numbers set. :)