What are your most creative financing strategies?

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Rental Property Investor · Pompano Beach · Member since 2022 · 8 posts · 15 votes
3y
Quote from @Joe Villeneuve:
Quote from @Crystal S.:

10% down which co-signer paid on a Conventional 30 year. I made ALL the mortgage payments, co-signer made extra payments and Mom loaned me money to pay it off. (I have been paying her back) 
(Co-signer and I also made lump sum payment to pay it off) 

MORTGAGE FREE now but I had help. 

That's probably the most creative way I've seen yet to lose money.

Paid off property is 5 min from the beach / Ocean Drive .... Im not paying the bank interest, I dont have to pay rent $2,000 rent and I can travel anytime I want because I don't have a huge payment holding me back. I've seen people in their 70's still paying a mortgage.  

It may not be a win for you but its a win for me. 

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  • Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Don Konipol:
    Quote from @Jonathan Norton:

    Good Morning Everyone! 

    Question: what are your most creative financing strategies? 

    Thanks!

    Some of the “creative” financing methods I’ve used over my 40+ years as a real estate investor can only be utilized, or are only profitable in certain specific economic climates.  What worked in 1981 when interest rates were 18% is different then 2021, when interest rates were 3%.

    Purchased a retail/warehouse with tenant in place for $290,000 (seller financing) with $75,000 down.  The $75,000 I borrowed on credit cards.  Simultaneously sold a 50% interest to the tenant for $95,000 cash to me subject to the existing note.  So put $20,000 cash in my pocket and owned 50% of a property worth $290,000 (at purchase price) with a $215,000 mortgage.  The tenant/partner rent payment was 3N and covered the note payment which was a 5 year fully amortized at 6% interest when interest rates were at 18% in July 1981.  In 1985 my tenant/partner bout me out for $145,000 cash upon refinancing the property.

    wow this is a very advanced industrial advantage in your area of expertise. simply wow,  this is more like a very good business decision I guess.

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