What are some creative forms of financing?

4 Replies

Hello, my name is Antony F. Munoz from Portland Oregon, and I am new to REI. I am in the middle of creating my personalized REI strategy and am looking at different forms of financing. I was curious, what are some creative ways others have used to do REI? I appreciate every and all replies!

Welcome @Antony Munoz -

For me so much of the fun is learning, and I never stop doing it. I attend meetings, take courses, read books, watch webinars, listen to podcasts, etc. I recently posted a list of educators who teach creative deal-making and related topics. I think if you click on my profile you'll find the post. 

As for techniques, there's almost no limit to the amount of creativity you can bring. Starting out you can look into:

  1. Seller Financing
  2. Lease Options
  3. Master Lease
  4. Options
  5. Equity Partnerships
  6. Cash Flow Partnerships
  7. Joint Ventures
  8. Limited Partnerships
  9. ...


Have fun!

Originally posted by @Marco Bario :

Welcome @Antony Munoz -

For me so much of the fun is learning, and I never stop doing it. I attend meetings, take courses, read books, watch webinars, listen to podcasts, etc. I recently posted a list of educators who teach creative deal-making and related topics. I think if you click on my profile you'll find the post. 

As for techniques, there's almost no limit to the amount of creativity you can bring. Starting out you can look into:

  1. Seller Financing
  2. Lease Options
  3. Master Lease
  4. Options
  5. Equity Partnerships
  6. Cash Flow Partnerships
  7. Joint Ventures
  8. Limited Partnerships
  9. ...


Have fun!

Hey Marco Bario,

I feel the same way, learning has become one of my favorite things to do. I really appreciate you taking time out of your day to leave me a meaningful reply! I will definitely have to look into some of the options you listed, and that previous post of yours.

Thank you,

Antony F. Munoz

@Antony Munoz   Welcome to BP!  I started off buying a lot of seller financing deals, typically fixers that I then used combinations of friend's money or lumber yard charge accounts to fund the rehab, then refi and used the profit to move onto the next deal.  Sometimes my credit cards too, but try to stay away as it will lower your credit score and make the refi harder.  Hence the lumber yard charge account because they didn't report to credit bureaus.

I eventually moved onto to Purchase + rehab financing offered by local banks, as I could close once, finish the rehab, and then it would convert to a normal mortgage, without having the stress or extra costs of doing a refi after.  

The bank would also do the appraisal ARV in advance, so I knew what it would be worth after the rehab, and the bank would lend off that. So also didn't to stress as much wondering if it would appraise or not.

Hope that helps!

- Tom

Originally posted by @Tom S. :

@Antony Munoz  Welcome to BP!  I started off buying a lot of seller financing deals, typically fixers that I then used combinations of friend's money or lumber yard charge accounts to fund the rehab, then refi and used the profit to move onto the next deal.  Sometimes my credit cards too, but try to stay away as it will lower your credit score and make the refi harder.  Hence the lumber yard charge account because they didn't report to credit bureaus.

I eventually moved onto to Purchase + rehab financing offered by local banks, as I could close once, finish the rehab, and then it would convert to a normal mortgage, without having the stress or extra costs of doing a refi after.  

The bank would also do the appraisal ARV in advance, so I knew what it would be worth after the rehab, and the bank would lend off that. So also didn't to stress as much wondering if it would appraise or not.

Hope that helps!

- Tom

 Hey Tom,

Thank you, for leaving me a meaningful response! Your reply is very insightful, and your experiences are interesting. Especially because I currently have none, But I am very excited to begin!