Any suggestions on books all about creative financing?

Question

Hi everyone,

I know one of the best ways to grow a RE business more quickly and larger is to use OPM (other people's money) to finance your deals.  I know there is a ton of great information here on BP on this subject that I have read but I was wondering if anyone knows of any books that I could read as well that deal strictly with this area?

I LOVE reading RE books and I am really looking for one that talks just on all of the aspects of financing using OPM to help me learn it from A-Z.  I have read some great books but they just devote maybe one chapter or a small section to using OPM and I am really looking for one that is solely dedicated to the topic.  Also hopefully one that is not so complex and deep that it would take an attorney to understand it :)

Anyone have any suggestions that might fall into this category?

Tin Lam · Answer

Nick K.@ books that are related are AD Kessler A fortune under your feet, Fixer Jay Gold Mine, and Jimmy Napier Invest in Debt!! Find those books and they are talk creative!

Pat L. · Answer

Here are a couple I have completed 
Bought a property @ tax lien auction for $20,000
Put in $7,500 for renovations, buyer/investor did all the work. 
Sold it to investor for $38,900 holding the first.
Collected $18,000 in payments over 4 years.
City reassessed property @ $78,000 taxes went up considerably making rental income cash flow less viable. 
Worked with the investor to sell the property to a Veteran who qualifies for significant property tax concessions. 
 Selling price was $50,000, buyer put down $5,000, I offered to hold the first @ 10.5%.
Seller had to evict old tenant & clean the place up so arrears & late fees on the original note for 5 months vacancy pushed the payout on the original note to $42,240.
Seller had the option to take the capital gain over 10 years but chose to take $1391 cash immediately.
Final note was for $52,000 @ 10.5% as I also financed the escrow.
Bottom line is 10.5% return on $52,000 for a total investment of less than $3200.

Second one
Investor wanted $32,000 for a quick flip.
I took it @ 14% for 4 years.
Investor put in $4,000 of his own $ & did all the renovations.
Home was rented for $950 & I collected $17,800 in the 4 yes.
Investor tried to sell it but had given the tenant a lease so she wouldn't move.
Investor had already spent what he thought he was going to clear on new construction equipment so was in a bind as the mortgage I had on him affected his borrowing for the construction business he was in.
We simply took the property back deed in lieu of. Then did a lease to own it to the same tenant for $950 a month & $2500 down. Two years later she moved & walked away from her option to buy deposit & all the renovations she had done.
I had an open house for potential Lease to own buyers & had a deal signed that day with a $3400 deposit. Two years later they got financing & paid me $80,000 for the property they also put significant renovations into.

Bill Gulley · Answer

That's okay Steve, not much there as I recall, not much more than the point made above.

I did give an opinion of what "creative financing" meant to me, basically finding unconventional or out of the box strategies utilizing your knowledge, assets and resources available to facilitate a beneficial transaction.

Steve Babiak · Answer

Unfortunately, Joshua Dorkin has done away with the groups here; not sure if the content was archived anywhere so that it could be retrieved, since many of the groups were just used for posting ads.

Bill Gulley · Answer

I strated a Creative Financing group thing here on BP and I guess I didn't spark too much interest as few commented and couldn't get them to start from the beginning.......everyone wants a short cut I guess, anyway,

Can you define waht creative financing is or what could be involved? What is creative financing?

Seems everyone thinks there is some secret way of doing deals, with OPM or using other assets or working with others to accomplish a common goal.

Where the group died quickly was in saying, before you can get creative, you need to know the rules of the game and what types of financing could be available.....too much work already!

That's like saying I want to play a trumpet, but I only want to play jazz and I don't want to learn the scales or music theory, I just want to play jazz!

Or, as an example, I acquired a property that Realtors had spent years (decades) trying to buy as well as developers. In two appointments, I had the property tied up with an agreement and walked away not paying a dime at closing, getting the seller to finance the entire thing and to boot, the seller kicked in cash to pay for development expenses as well as operating capital! No, the seller was not a partner! Over three quarters of a million dollar deal.

You won't get the "how to do that" in any book!

Learn the basics, master the basics, then you can get creative and think out of the box!  :)

Steve Babiak · Answer

Robert Allen "authored" "No Money Down", and re-issued it a few years ago for the 2000s.  Covers lots of ideas, not all of which would be considered "legally acceptable" to all these days.