Deciding whether you are a real estate investor or in the business of real estate, there is a key difference, will determine which financing options are optimal to your situation. Financing options and market changes are not a necessary evil. They are a key component to your success which, if ignored, will cause you to lose profits and jeopardize your investments.
No investor is immune to the need for creative financing. If you’re a wholesaler or bird-dogger then you need confidence that your buyer (assignee) can perform. Learning ways to get all spectrums of buyers a loan will help the flipper close more deals, faster. Additionally, all of the creative financing options discussed here are exit strategies as well. The US Marine Corps have a war time expression that is “complacency kills.” In real estate investing, complacency with your current financing options can kill your deals. Taking a blind eye to any of the options only eliminates another way one of your buyers can’t purchase your property because you weren’t familiar enough with the option to suggest it. The old stock cliché “you make money when you buy” is a lie. You only make money when you sell and put money back into your pocket. The financing options available for your buyers or tenants is THE paramount facet of this process.
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