Creative Financing Methods
I always see a lot of people asking about creative financing for commercial real estate and thought a thread should be started so everyone could share their examples of how they have structured their deals or strategies they know of so that everyone can gain. We all know there is multiple ways to stucture a deal and I know you all have seen some pretty creative ones out there so lets hear about them...
I have a residential/retail property, empty in need of rehab. I leased it for 8 months with graduated payments as follows, 0, 0, 250, 250, 500, 500, 600, 600. The Lessor/Buyer also has an option to purchase at 40,000. The lease and option expire after the eighth month. He is doing the rehab during the 8 months (with his own money). Basically, I owner financed but retained ownership. Either he buys it at contract end, or I keep it and had a rehab done for free. I only paid 7500 for the property.
On a development deal bring in the seller (land owner) as an equity partner.