Bank Loan Creative Real
Estate Financing
Technique #9...
A bank, bank loan and other types of lenders will make loans based on your signature or perhaps the
equity you have in a car, boat, or other property.
Demonstrate your ability to repay these loans by working with a few local banks. Start by borrowing small amounts and repaying the loans earlier than agreed, this will turns you into a solid business partner for present and future
transactions. With this technique, building up a line of credit with two or three banks in not difficult.
You will also find that the seller can be a good source to lend you the down payment.
when the required down payment is only a few thousand dollars, or when you are a few thousand dollars short, a flexible seller may agree to a delayed down payment 6 to 12 months after closing. Offering the seller a high interest rate can help you do this. many sellers would find a 12% to
15% interest rate very attractive and might even spread the down payment over a longer period of time (for example,24 to 36 months). On a relatively small amount of money, the higher interest rate does not actually cost you that much more, especially because it is a tax deduction.
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Specific
Situations to
Apply
Technique #9
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The
Property
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Property
Offered Below
Market
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Low
Mortgage, High
Seller Equity
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Owned
Free and Clear
No Mortgages
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Low
Interest
Assumable
Mortgages
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Existing
1st or 2nd
Mortgage
Private
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Unused
Room (s) that
Could be
Rented
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The
Buyer
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Cash
for only Part
of Down
Payment
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No
Cash at All
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Good
Credit on
Banks or
Credit Union
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Lump
Sum Cash Due
Soon
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Large
Monthly Income
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You
Know People
with Cash to
Invest
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Equity
in Real or
Personal
Property
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Dead
Equity
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The
Seller
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Needs
All Cash for
Equity
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Outstanding
Financial
Obligations
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Large
Capital Outlay
Coming Up
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Must
Sell
Immediately
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Bank Loan
to FHA
Loan
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