Creatively Finance your Deals
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Most of us assume that when it comes time to buying a building, whether it be a house or a million dollar structure, that there are only two ways to do it: Pay cash or get a mortgage. Well I’m here to tell you that there are many, many other ways to do creative financing.
The two easiest ways are standard text in our real estate purchase forms: #1. Assuming another’s mortgage Quick note: Got this from my client today: “Okay, some very heavy conversations with brokers and banks here this morning. One thing is for sure is apparently variable mortgages are not assumable!” #2. Balance of sale |
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years or know that you will be able to pay it off when the term is due. The way it works is that the seller **“lends” you a certain amount of money at an agreed upon rate for a limited time (usually 1-2 years). You pay them the interest either monthly, quarterly or annually for the time period on the total amount borrowed from them and at the end of the term or sooner, you pay the full amount back. This works if you are low on cash or wanting to keep your cash. After the 1-2 years renovating or re-renting (apartments) and increasing the value of the building, you refinance and pay the vendor back.
**”lends”: The vendor doesn’t really hand over the money, it’s just that you don’t give him the amount until a later date.
Great benefits:
I added this article because I love real estate and educating people on the matter. If you would you like me to work for you, call me 514-402-8444 or EMAIL ME!
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