I am interested in purchasing real estate using creative financing strategies and would appreciate any advice or guidance you can provide. My goal is to build long-term cash flow through strategic property investments. I look forward to your insights and recommendations.
Rental Property Investor · Emmaus, PA · Member since 2021 · 152 posts · 85 votes
1y
Dario,
In order to give creative financing advice, I'd need to have a better understanding of the tools currently available to you.
For instance -
1. Do you own a home that you could refinance or use a HELOC? Equity in your personal residence could be a source of capital for your first rental property.
2. Do you have an IRA? If so, you could designate the IRA as self-directed or take a loan from your IRA to purchase an investment property.
3. Find a seller that is willing to seller finance. In certain scenarios, you may be able to find a seller that is willing to hold a portion of the debt while a bank covers another portion, leaving your out-of-pocket requirements to be low.
4. What I recommend you do, is begin to grow your network. Attend events and meet-ups, let people know you are interested in getting into the game and want to partner on a deal. Your first deal may require that you give 90% of ownership to the other partner (given experience and capital), but 10% of something is better than 100% of nothing and it lets you get your foot in the door!
Rental Property Investor · Emmaus, PA · Member since 2021 · 152 posts · 85 votes
1y
Dario,
In order to give creative financing advice, I'd need to have a better understanding of the tools currently available to you.
For instance -
1. Do you own a home that you could refinance or use a HELOC? Equity in your personal residence could be a source of capital for your first rental property.
2. Do you have an IRA? If so, you could designate the IRA as self-directed or take a loan from your IRA to purchase an investment property.
3. Find a seller that is willing to seller finance. In certain scenarios, you may be able to find a seller that is willing to hold a portion of the debt while a bank covers another portion, leaving your out-of-pocket requirements to be low.
4. What I recommend you do, is begin to grow your network. Attend events and meet-ups, let people know you are interested in getting into the game and want to partner on a deal. Your first deal may require that you give 90% of ownership to the other partner (given experience and capital), but 10% of something is better than 100% of nothing and it lets you get your foot in the door!
In order to give creative financing advice, I'd need to have a better understanding of the tools currently available to you.
For instance -
1. Do you own a home that you could refinance or use a HELOC? Equity in your personal residence could be a source of capital for your first rental property.
2. Do you have an IRA? If so, you could designate the IRA as self-directed or take a loan from your IRA to purchase an investment property.
3. Find a seller that is willing to seller finance. In certain scenarios, you may be able to find a seller that is willing to hold a portion of the debt while a bank covers another portion, leaving your out-of-pocket requirements to be low.
4. What I recommend you do, is begin to grow your network. Attend events and meet-ups, let people know you are interested in getting into the game and want to partner on a deal. Your first deal may require that you give 90% of ownership to the other partner (given experience and capital), but 10% of something is better than 100% of nothing and it lets you get your foot in the door!
Hey Kyle! Aprecciate the advice. I’m all in on finding seller-financed deals and have been driving for dollars to spot great opportunities. Do you have any advice on how to approach sellers for financing or structure these deals?
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
1y
@Dario Alvarado "Creative Financing" is such a broad term that it would mean something different to everyone however if you are referring to acquisition of buy and hold property then it sounds like you are referring to the strategy of seller financing.
Some of our best deals were taken down on terms. That said here are some terms that you must be familiar with and know how they work together to structure any deal.
off market
skip tracing
cold calling
pay per click
Purchase price
Down Payment
Interest rate
Amortization
loan term
I'll leave it here....There is so much to discuss in this area of real estate that I'd end up writing a novel for you to read.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
1y
@Dario Alvarado thanks for the post. My suggestion here is to get connected locally for this. Meaning, what works for me in my market...may not work for you in your market. Visit your local REI groups. There are many groups that meet across the country. Some post here on the Bigger Pockets Marketplace. Many post on meetup.com. Eventbrite is another resource. Even facebook will have some. Networking is always a great practice and local people will be able to share with you what's working in your market.
Creative financing is a powerful tool! I've found that seller financing and partnerships can be particularly useful for structuring win-win deals. Also, if you're looking at multifamily or value-add properties, private lenders and JV partnerships can often provide flexible funding. Have you come across any specific opportunities you're considering?