Creative Financing Reduced to Simplicity...

Understanding creative financing is extremely important for your success as a real estate investor. When you make offers on deals, you want to have the confidence of knowing that the money for the deal is going to be there if the offer is accepted.

One of the major mistakes investors make is that they get an offer accepted, they go to a lender to get a loan, and then they get turned down. So, the problem is that they are only going after one source of financing. If that source does not come through, they quit and cancel the deal.

The other problem we see as we train investors is that they think creative financing means to put together a deal with financing that is as crazy and difficult as possible. If the financing is hard to understand, what makes you think the seller is going to accept your offer? The harder you make the deal to understand, the less likely it is to happen. As with anything in life, keep it simple...

That is why we teach creative financing the way that we do. We want it to be easy to understand, and we want you to have multiple options. The word "creative" simply means that you are finding a different solution to the same problem. There are many ways to finance deals.

Keep in mind that we are only talking about how to raise money for a deal that you are going to finance. There are other techniques that do not require getting a loan (seller financing, lease options etc.). You will learn about those methods on another portion of our site. Here is our method of securing financing for a deal:

1. Traditional Loan
2. Hard Money Loan
3. Private Lenders or Private Financing
4. Wholesaling
5. Finding Partners

On each individual link, we will discuss the strategy in detail and how it works. However, for the purposes of this page, we want you to understand the big picture. Here is the big picture:

If you have gotten an offer accepted and it is a good deal that can make a profit, are other people going to want to get involved with the deal? YES! This is the truth: Money always flows to good deals. The better the deal is, the faster it flows. In fact, if you are having a hard time finding financing for a deal, then either you are not trying enough funding sources, or you do not have as good of a deal as you thought you did.

So, once the offer is accepted, we want you to start working on all five sources of financing at the same time. If you have a good deal, and you are working on all five creative financing strategies at the same time on the same deal, do you think you are going to have at least one of them come through? If the deal is good, then the answer is yes. In fact, more than one source could come through.

If more than one source comes through, then you can choose the one that makes the most sense and the most profit.

Make sense? This is how we teach you creative financing and reduce it to something that is simple and practical. Yes, anyone can do this with the right training and education.