Creative Financing 2

[Ronald Hunt]

Hello BP fam!

I wanted to create a forum to hear from you on what are some of your favorite creative financing techniques?

Feel free to share!

[Bill Gulley]

BP  has a creative financing forum section.

CF being "creative" goes to circumstances and the problem needing to be solved, it involves the application of techniques, assets, knowledge and methods that leads to a  successful conclusion. Not necessarily a particular method. Saying that you might only do Sub-To transactions is putting a round peg in a square hole if you try applying that approach in all your deals. 

Installment sales, a lease-options, sandwich lease options or a master lease are transaction that are not as common as conventional transactions, but none are creative  as they are usually applied in a systematic and repetitive manner. Anything that is done the same  way isn't creative, it's just a less often used technique.

Might be asking what non-conventional transaction have been used......

No one technique is the most appropriate for the parties or a property transaction.

That said, for decades the lead transaction on the unconventional side has been the Contract For Deed or Land Contract also known as a Bond For Deed, but recent changes in laws has taken this method out of the picture. It circumvents foreclosure laws, has deed issues, along with the old matters of insurance and predatory practices. Now, they should be avoided. A Subject To deal is much better done with a Special Warranty Deed.

Who ever that is advertising Contract For Deed forms on BP is really behind keeping up with legal and title matters in real estate! Just because they are advertised on BP doesn't mean BP endorses what they are doing, I'd be a bit more selective in what I advertised but I don't sign up advertisers. :)