Funding can be one of the largest barriers to entry in the real estate business. I remember the very first time I walked into a lender’s office and tried to discuss funding for my first apartment complex I wanted to buy. My experience (or lack of) was immediately brought to my attention not to mention my complete lack of liquid assets (NO CASH!)
That day was quite sobering as left that office although I was still determined to break into the real estate business. Which was a fortunate attitude seeing as I had quit my job as a pilot to go into real estate full time two weeks earlier.
What followed was the next 8 years of survival in the business and ultimately an almost 400-unit portfolio. I survived the Great Recession by mastering the techniques of creative financing such as seller financing, master lease options and raising private capital just to name a few.
If you are just starting out or whether you have been in the real estate business for a while, you always want to complete each transaction with a little cash out of your own pocket as necessary. The more cash you keep in your pocket the more options you keep open to yourself. Remember; Options = Cash!
Distressed assets are also great hidden treasure in today’s market. If you have looked at more than a few deals lately, chances are you have seen a distressed asset. This could be a property with deferred maintenance, low occupancy, high expenses, etc. These are great opportunities because the seller is usually motivated to sell! The catch is that most traditional lenders these days are not lending on distressed assets. Learning the art of creative financing can help you close the gap between these distressed sellers and your financial freedom! This is how I got started and built a cash flowing portfolio of hundreds of units and you can too.
The main technique you need to learn when seeking creative financing is to bring value to the seller. You can do that by learning to solve 3 main types of problems: the seller’s problems, the properties problems, and lastly your problems. If you can make an offer that solves these issues you have an offer that is much more likely to get accepted.
If you want more information like this, go to www.realestateraw.com where you can learn more about-
- How to get Creative Financing for Real Estate Deals
- Use Master Lease Options
- Get Seller Financing
- Get Brokers to Find You Creative Deals
- Negotiate Creatively
For more information like this check out my blog at www.realestateraw.com and join my Facebook group Real Estate Raw for Multifamily Investors.
Best of luck!
Bill Ham
