hello I am new to investing, and with a bad credit history its impossible for me to get bank financing. So owner financing seems to be a good option. My question is what contracts do I need. Where do I, or with whom do I file contracts. Is there a step by step process for doing owner financing?
Thanks for the advice.
Steven file, Omaha nebraska
Creative Financing involves
- Acquiring properties sub2, lease option, wrap, land contract, installment sale on free and clear properties
- Getting Private Lenders - learning about self directed IRAs, paying all cash
- Getting Joint Venture Partners from business owners, paying all cash
- Creating Joint Venture Partners with home sellers that are not wholesaling candidates - minor repairs - Give a note to home sellers, fix with private money, resell, pay off note in 4 months
- Wholesaling to All Cash Buyers
None of these strategies requires personal credit or banks or personal guarantees.
Don't be a One Trick Pony,
Be a Transaction Engineer :)
thanks, ill check out that post. I have read several books and it all seems overwhelming. Im trying to learn as much as I can one by one and then master what i learned. I don't want to fall victim to trying to take in everything at once and be to overwhelmed and confused to keep me from going out and doing a deal.
Then start at the beginning, learn real estate before trying to deal in real estate!
Reality today is, that even sellers willing to finance want to see credit, it's only prudent. The issue is then how you will pay them, how your guarantee them their money over and above where you failed before. Some credit issues can be overlooked by sellers that conventional lenders will not.
There is a reason you were sent to the first grade before you went to the second grade, many try to jump in at the 6th grade, they usually fail or get in trouble. Start at the beginning. Good luck :)
I agree that more education is what I need. My goal is to have rental properties to support myself when im no longer able to work. Im not counting on social security to live off of. I stumbled on to biggerpockets while looking for books and education on buying and holding property. What are your suggestions on where to start? Im still figuring out how to navigate biggerpockets
Via Brandon Turner :)
I will joint venture with you without a good credit. I am a rehabber and I do joint venture with anyone who can invest some cash. How much cash do you have in reserve for your investing purposes and what kind of return are you looking for? Please contact me in private if you would like.
Depending on what you are trying to do will determine which contract you will need. An easy way to acquire deals is with owner financing. You will need a purchase agreement, a deed of trust, a promissory note, and I always include the seller as an additional insured on the insurance policy.
If you are new to investing, I would find a real estate lawyer who will write your first purchase contract. Have them do all of your deeds of trust and promissory notes and filings. Many investors get caught up in trying to "save money, by doing everything themselves" instead of delegating tasks and spending your valuable investor time finding deals and private money to fund them.
Partnering with someone who has already done it is a good way to go, but ultimately finding a deal and making an offer is your goal. No matter how many books you read or seminars you attend, there is no substitute for making offers and getting deals.
Lance A White
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