Creative Ways to Earn Money for a down Payment

[James Cannon]

I'm  a new investor but I sunk most of my savings in to the purchase of my first home, a duplex. I'm interested in purchasing more cash flowing properties but I need more money for the down payment. What are some creative ways I can raise the money. I currently work a 9-5 and am saving but at this rate it will take me another year, maybe 2 to raise the money. What are some creative ways to raise money for a down payment. Thanks!

[Brian Gibbons]

@James Cannon

 Hi James 

 Creative financing has to do with buying property without going through a bank.

Here's some tools that I use every day and my students use every day

For pretty houses with little Equity, you  use subject to, lease w option, lease purchase, land contracts, note plus mortgage or deed of trust,

For minor rehabs I use joint ventures with sellers,  where I buy the property with a note, no payments on the note for three or four months, then fix it with private lender money, then resell it and pay the note off.  This is called a cooperative rehab 

You can buy a property that needs work with private lender money, and selling on a wraparound mortgage using an RMLO

You can buy on a TIC agreement, where you get on title, and then fix and flip or fix and hold.

 You can do a joint venture with a doctor or a dentist that has enough money to pay cash for acquisition costs and rehab costs: you find the deal, fix the deal, resell the deal, and split the profits once you pay back the cash partner.

I hope that helps.