Hard Money Loans

Creative financing techniques really do work for people. Once you know your options, you will be able to discern your own creative way to invest in real estate. The following are several options that will help you become creative with your real estate financing.

Research Online

First, research online, industry publications or by word of mouth for hard money lenders. Hard money lenders are specialists in short-term loans with high interest. You may also want to look into no-doc or low-doc loans. These types of loans require minimal if any, documentation regarding your income or credit. The only draw back to these loans is that you will only be able to borrow up to 80 percent of the purchase price or property value.

Seller Financing

Seller financing is another creative option. Sometimes a bank will loan up to 90 percent and allow a seller to take back a second mortgage from you for 5 percent, leaving you with needing only 5 percent for a down payment.

Land Contracts

Land contracts or “contracts for sale” is another option. This is when the seller lets you make payments and delivers the title upon payment in full.

Use Your Credit Card

You may want to look into using your credit cards for assistance when financing. This is a good idea if you have a low APR rate or are looking to have the real estate for a short period of time, less than six months.

Tap Into Retirement Accounts

People can tap into their retirement accounts to help finance for real estate investments. It is important that if you consider this option that you speak with a tax accountant and/or attorney because the laws are rather complex in this area.

Find a Note Buyer

You may want to find a note buyer. This is when a seller needs cash and you have none, so the seller raises the price and sells you the property for no money down, taking back two mortgages from you. The seller then arranges for a note buyer to pay him/her cash for the first mortgage at closing, with a discount. This leaves you with paying two note holders and the seller gets the cash that he/she needed.

Borrow Against Other Property

If you have other property, then you can always borrow against it. Meaning, you can take out a home equity loan on the property and use it as a down payment on an investment property, without violating the rules noted on the primary mortgage. As long as the money taken out from the home equity loan was initially intended to be used for something pertaining to the first home, but somehow was never used.

Borrow From Friends and Family

Finally, there are always friends and family. You can create a plan that can benefit both you and the friend or family member that you are borrowing from, as long as you live up to the plan.

Preferred Online Home Mortgage Lenders – We maintain a list of recommended mortgage companies online and update the list regularly.

More Creative Financing Tips- Read this article to find more creative tips to financing your mortgage.