Creative Financing

The following information will provide an overview on ways to generate creative financing to provide funding for your real estate investments. One thing to keep in mind with regards to getting a seller to agree to creative terms is that if you do not ask for it you will never really know what could have happened. If you provide compelling reasons why your request for creative financing is a Win/Win situation, you just may convince them to look outside their normal comfort zone and do the deal.

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Cash is King
When it comes to having a strong negotiating position with a seller, nothing compares to telling them that you are willing to pay them cash immediately. Cash is a powerful tool and it is one way to set you apart from the many investors that may be after the same deal. There are a number of ways to ensure that you will always have the capital available to negotiate your cash deals with motivated sellers. The following sections will provide a number of possibilities.

Borrowing from Friends, Family, and Professionals
Although at first you may have concerns about approaching people you know or who are family members to discuss borrowing money from them, keep in mind you are approaching them with a business opportunity, not a handout from them. Your success in achieving the desired results with these people will depend completely on how you present your opportunity. If you sit down with them not properly prepared without having any of the obvious issues or questions worked out, you will probably walk away without the cash. However, if you put together a project plan that will include an overview and most importantly a viable exit strategy (so they know how they will get paid back) there is a good chance you will be successful.
Once you have exhibited your ability to complete these real estate transactions with the anticipated results, you will have people coming to you as an investment option.

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