Creative Financing Ideas In Minnesota
I'm new to real estate investing and very interested in hearing about other people's experiences with some creative financing options in Minnesota!
Good afternoon,
Depending on the situation there are a variety of options.
DSCR - Debt Service Coverage Ratio
Bank Statement Programs
1099 Programs
Asset Based Programs
100% Financing for Rehab Programs
100% Financing for Construction Costs
What seems to be the direction you are leaning towards?
Honestly I'm not sure yet, I'm hoping to hear some stories on other people's experiences to come up with my own game plan!
Hi @Mike Hjermstad, welcome to BP and REI! If you look at the top of the site there is the search icon (magnifying glass). Search with your questions. There is a wealth of info specifically about buying on terms - L/Os, Subto, Seller Financing.
If you still have questions, feel free to reach out. I'm not in Minnesota but will try to help with any specific questions you have. :)
Quote from @Mike Hjermstad:
I'm new to real estate investing and very interested in hearing about other people's experiences with some creative financing options in Minnesota!
A lot of people use Seller financing. I've done quite a few myself. You can often get better terms than you would through the bank. For example, one of my deals was 10% down and 5% interest when the bank was requiring 25% down and 6% interest. It's worth studying this method and learning what the benefits are for the Seller so you can pitch the idea and make it appealing for them.
Quote from @Nathan Gesner:
Quote from @Mike Hjermstad:
I'm new to real estate investing and very interested in hearing about other people's experiences with some creative financing options in Minnesota!
A lot of people use Seller financing. I've done quite a few myself. You can often get better terms than you would through the bank. For example, one of my deals was 10% down and 5% interest when the bank was requiring 25% down and 6% interest. It's worth studying this method and learning what the benefits are for the Seller so you can pitch the idea and make it appealing for them.
Thanks for sharing! I will start digging into this financing option now!
Quote from @Shiela R.:
Hi @Mike Hjermstad, welcome to BP and REI! If you look at the top of the site there is the search icon (magnifying glass). Search with your questions. There is a wealth of info specifically about buying on terms - L/Os, Subto, Seller Financing.
If you still have questions, feel free to reach out. I'm not in Minnesota but will try to help with any specific questions you have. :)
Awesome, thanks for your help!
@Mike Hjermstad I can recommend some good Facebook groups and meetups for you to attend. Message me and I can connect you with them
Start researching Subto deals. If a seller doesn't have equity in their property this is a great option. If they do have equity and are looking to access it then seller financing is a great option.