Best Sources Of Creative Financing Education?
Hi guys.
I am about to jump head first into rehabbing and real estate investing.
The biggest thing holding me back is my ignorance of financing. I realize the competition is fierce and I know in order to compete in the market I'm going to have to be able to make fairly quick decisions and offers.
I need to be able to think quickly and analyze a deal and be able to structure an offer based upon the given circumstances. I don't want to miss any deals because I am unable to come up with a creative financing offer that enables me to offer the seller a deal that fits their needs.
What books, seminars, tapes, etc. have you found to be the best at teaching creative financing? I'm not looking for pie-in-the-sky BS nor am I looking for unethical advice. I'm just looking for a good foundation that teaches and illustrates the many different ways a deal can be made where both parties are satisfied.
If a family member or close friend asked you for one source of quality real estate financing education, what would you recommend?
Thanks for any advice you can offer.
Are you asking about buying rehabs or selling them after they have been rehabbed, or both?
Thanks, Dave
Get to know an appraiser that is willing to comp for you. And develop a relationship with a hard money lender.
Rehabbing requires cash. Like roboxking said, you need to have a good relationship with a hardmoney lendor or a private source of funds. I don't see how creative financing can be used with rehabbing. Contractors don't work on a "pay me when it sells" basis. They expect to be paid by BEER 30 on Friday night.
Also, roboxking is right again. Having a good appraiser on your team is a must. Someone who can help you determine a realistic ARV before you make your offer and begin work.
"Begin with the end in mind"
-Covey
"Always include extra $$$ for the problems that will arise as you do your rehab, at least 10%."
-JohnCl
Actually the rehabbing part for me is easy.
The part I need help with is actually making the deal. The financing aspect. Making the deal.
So much of this business rides on finding and making the deal with the seller. I want to be able to sit down with the seller and have the knowledge to come up with whatever creative financing is necessary to give the seller what he needs to make the deal. "Lease Options", "Subject To's", "Second positions", etc. I just need a good source to learn about the basics of real estate financing.
Still looking for advice for some good books or courses to learn creative real estate financing. Any advice is welcome.
Thanks.
I've heard a lot of good reviews on John Locke's subject to manual and course. I just purchase LeaseOptionKing's lease option course. Check with the products and services page of this site.
In any deal there are two parts, yours and the sellers. The good news is that your part doesn't change. Tell us more about you and your financial situation. Can you qualify for conventional financing? Do you have money to put down? How much construction experience do you have?
Don't get in a panic about how much competition there is out there and how you have to be able to make deals on the fly. Real estate is basicly a very slow business.
You might want to research using seller financing as an option. I work with many rehabbers that sell their property that way. There is a good book out there by W. Eddie Speed called Streetwise Seller Financing.
You might find it at Paper Source I am not sure, but it is a form of creative financing that you can always consider. The book tells you how to structure the deal to maximize the note, how much down payment in relation to credit scores, etc.
Many variables that make it a good way to go.
_________________
With a smile and warm regards,
Gail L. Foley
[ Edited by Smiling on Date 11/02/2004 ]
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