Creative Financing Strategies for Savvy Real Estate Investors Let's Talk Real Estate Investing with Sharon Vornholt

Let me ask you this; are you using any creative financing strategies in your business today? If your answer is no, what is holding you back? It’s probably because you don’t understand the different ways you can do this. Your ability to use creative financing strategies will change your business because you will no longer have to depend solely on traditional funding sources for your deals.
The two biggest problems real estate investors everywhere have, are finding deals and funding their deals. Finding deals is all about marketing. If you do consistent, targeted marketing you will have leads coming in the door. However, once you’ve found a property, where do you get the money to fund the deal? That’s what I want to talk about today. The importance of adding creative financing strategies to your real estate investing business.
Learning how to structure your deals creatively will give you so much more opportunity. In fact, closing on a property will never be a problem once you understand these strategies and know-how to implement them in your business. Your ability to quickly find a way to fund a deal, will likely “make or break” your business over time.
 
Don’t Be a “One Trick Pony” If you are relying solely on banks for funding your deals, that’s exactly what you are. You only have one way to close deals.
Now don’t get me wrong; investor friendly banks should always be one of your go-to funding sources. However, I can promise you that one day that door will be closed when you need it. You will find yourself in a position where you won’t be able to get a loan from a traditional lender. Their decision might be based on the economy, the mix of property that you have in your rental portfolio, or one of many other things. Having a good understanding of creative financing strategies will completely eliminate that problem when that day comes (and it will come).
 
Learning from the Past One thing I learned in the 2008 real estate crash was that it was essential for the survival of your real estate investing business to have more than one way to close your deals. Investors that were only using banks and commercial lenders at that time were in trouble. To survive, they had to get creative; they had to learn creative financing strategies.
From a purely practical standpoint, could you do more real estate deals if banks weren’t your only source for financing? The answer is definitely yes! What if you could double or triple the number of deals you are doing now without relying on banks or using any of your own cash? What would that look like for you? How would that change your business?
I’m going to go over 8 creative financing strategies today that you can use in addition to traditional investor friendly banks. But before I do that, let’s talk about the situation we find ourselves in today, and what the future of real estate may look like on the other side of Covid-19.
 
The Future of Real Estate Today is a unique time in history where no one really knows for sure what the real estate market will look like 12-18 months from now. Most people have never experienced anything like Covid-19 and this pandemic in their lifetime. However, we can make some predictions based on what has happened historically after other major events like the real estate crash in 2008. This timeline was a little different in some areas. For some people, it was 2007, while others didn’t fully feel the effects of the market crash until 2009.
In the next few months, you may not see a lot of change. Houses today, are still selling for top dollar and they are getting multiple offers in many instances. That is on the retail side of real estate.
However, there is another side to this. Lenders and landlords are working with people that can’t pay their rent or their mortgage, in part because you cannot foreclose or evict someone for non-payment at this time. The government has enacted laws that prevent landlords and mortgage