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One of the biggest issues real-estate investors have is how to fund their real-estate investments. The two most common ways for an investor to purchase their first investment property is with an all-cash transaction or with a traditional bank loan. These are both acceptable ways to finance a purchase, but they’re not always the best options. Instead, using alternative solutions for securing capital can be an excellent way to quickly scale your business and expand your investment portfolio.
Utilizing creative financing options in your business will provide you with the ability to secure deals that you otherwise may miss out on.
What is creative financing?
Creative financing refers to unique methods and strategies for securing funds and capital to purchase real-estate investments. Traditional financing options are normally provided by financial institutions, banks and mortgage lenders. With creative financing, an investor can access funding in a variety of creative ways.
Related: 6 Signs Your Business Idea Is Ready for Financing
Seller financing
Seller financing is one of the easiest ways to acquire an investment property without any banks or lenders. As long as the seller owns the property and is clear of any mortgages, they can provide an option to an investor for seller financing (also known as owner financing).The investor and seller simply work out the purchase price and…
