The Single Key to Creatively Funding Deals

Several apartment or aspiring investors have approached me to learn how to create innovative funding for many different reasons. Almost all of the motives as to why a person would require creative funding are because:

• you have limited cash

• you are unable acquire a loan due to bad credit or lack of credit

• you want to leverage what funds or assets you have

• you need short-term seller-financing prior to permanent bank financing

If you aren’t part of one of those classes, then you’ll be joining a very crowded group. But don’t worry because today’s market is ripe for inventive funding.
Firstly, how do you catch those creative apartment contracts? Below, I have listed 5 “owner circumstances” that are crucial for some sort of creative funding. If you see an apartment owner in any these circumstances, chances are they are prepared for somebody creative like yourself to arise and assist them with their circumstances.
Here are 5 owner “circumstances” that you must always look for to discover creative funding deal prospects. They’re all over the place!

If you come upon a property owner who:

#1 wants to dodge capital gains taxes on earnings after a deal

#2 would be required to pay a hefty pre-pay loan fine if he sells

#3 is sick or has private situations that thwart him from operating the property, resulting in it being in poor operating and physical state

#4 Has to sell the property for some sort of reason, but there’s no equity in the property

#5 is exhausted and worn out and/or if the property is under-performing
These are all probable cases for creative funding to occur.

On another note, if you notice in a property listing or get the following words from agents or owners, it is a sign that an imaginative funded deal is welcomed: “owner motivated”, “seller financing”, “owner will carry”, “master lease option”, “distraught property”, “any offer considered”, or “investor sought”.

An easy way to go online and find tons of these deals is to go onto Loopnet and enter those key words directly above into their key word search box.

When you get down to the core of the matter, here is the secret to undertaking creatively funded deals, no matter how big or small: You need to ASK! That is the secret!!

If you did not ask for your wife’s hand in marriage, you would not currently be married to her. If you didn’t ask your boss for that promotion or pay increase you’d still be where you were beforehand. You see? That’s where it all begins. Thus, the basic way to obtain and accomplish anything greater than what you have today is to…ASK!

How do you apply this to innovative financing you say? Simple. First, get the owner’s enthusiasm for selling his or her property. Then, create an innovatively funded offer that meets some or all of his or her needs. Next ask the owner by sharing your offer. That’s where it all begins. If you do not ask, you will never know. And if you never know, you’ll never grow.

So go out there and ask, ask a bunch