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Feb22
Real Estate Investing - Robert Allen - Creative Down Payments
Filed under: real estate investing; Tagged as: real estate investor money, real estate investor presentations, real estate investor residential, real estate investor wanted, real estate investor website, real estate investors, real estate investors clubs, real estate listings, real estate marketing, real estate note investors, real estate property listings, real estate tips, rrsp real estate investingExcerpted from his best-selling book, Nothing Down for the 2000sAfter many years of success in the investment world, I have found there are only a few basic sources for creative down payments:1. Cash saved up by sticking to a tight household budget (the hard way).
2. Mortgages used with all parties involved, including the seller.
3. The use of rent and deposits involving the subject property.
4. Short-term borrowings from banks, mortgage companies, or other lenders.
5. Long-term borrowings from banks, mortgage companies, or other lenders.
6. The equity in other properties you own.
7. Partners who have the cash or the credit rating necessary to provide you with funds in exchange for a share of the profits.
8. Options that let you tie up the land until you can raise funds for the down payment.Creativity is born when you have a problem to solve. Creativity is the art of looking for solutions that are out of the ordinary, different, unorthodox.Check out these Cash Flowing Deals:
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By Robert AllenMost of us spend countless hours trying to solve ordinary problems in the same old ways.Consider, for instance, the most common problem of every real estate investor: lack of investment capital. Some of us don’t even have enough cash to make an initial investment. To make matters worse, most of us have been trained to believe that it is impossible to buy real estate unless we have cash down payments bursting our bank accounts wide open. So most of us, lacking that kind of bank account, never even try to invest.There are other solutions to the cash problem. These solutions require creative thinking. Stretch your mind to new dimensions. Begin to be creative. To do these things, you will have to make a firm commitment to the following:Positive thinking: Creativity is born and nurtured in an environment of “can do” thoughts.Broadmindedness: Regard the obvious real estate solutions, such as large cash down payments, as only a small percentage of the solutions that will ultimately work.
Disdain of the Ordinary Solution: Develop a healthy disdain for the ordinary solution. Try your hardest to practice creative solutions whenever possible.
Brainstorming: Discuss your problem. The real estate agent, the seller, the seller’s attorney, and anyone else who could have an impact on the decision to sell or buy should be involved. Forget that investing your own cash is even a solution.
Deep thinking: Ponder. Don’t give up—you’ll learn the excitement of flashes of creative genius.
Cultivate a creative mind: Treasure it. Some people will tell you that the only avenue that leads to successful real estate investments is paved with cash. You will eventually run out of cash—probably very soon. You’ll never run out of creativity. Cash loses value. Creativity never will.