3 Scenarios for Tapping Into Creative Financing for Your Real Estate: And the 2 easiest (and cheapest) places to start

Has your real estate investing stalled due to a lack of funds?

Or, has it failed to even get off the ground for this reason?

You’re not alone, but there’s good news here. Most people think they have a money problem, when in actuality all they have is an idea problem.

If you’ve been with me on this blog lately, you know how I feel about other people’s money.  The truth is, there is no lack of funding.

I’ve got two creative ideas for you that can get your real estate investing back on track or out of the gate faster than you can say “no money needed.”

One of them is a creative source shared with me by my students. Imagine that! My students taught me something that has improved the results of my own real estate investing.

There lies a valuable lesson. Always be open to new ideas, regardless of the source of that idea. It could change your life!

Anyway, this source of funds my students turned me on to is so easily accessible and its cost is so negligible that it’s almost free. Well… almost free when compared side-by-side with the traditional sources of money available (banks, hard money, private money, etc…) today.

I’ll share this creative source with you in a minute, but first let’s cover an idea for your funds that actually can be free.

Source #1: Your creativity!

Your creativity can be a bigger financial resource than actual money – to the point where you don’t even need money or access to bank loans. That’s right, no need for money or credit… just words and imagination.

The seller of the property you want to buy may be the perfect financer, if you’re creative enough to look for that option.  In fact, you should always look to the seller to provide financing for your deal first, as opposed to getting a conventional loan or tapping into friends and family.

It’s the FIRST place you should look and it’s the BEST place.

First – because getting seller financing can be really easy. I like easy.

Best – because using seller financing can be really easy.  Did I mention I like easy?

Typically this is referred to as seller-financing or seller-carryback, and I’ve come to discover over the years that there are endless ways to creatively finance a deal using the seller’s money.


  1. What does the seller need and when do they need it?
  2. How much does the Seller owe on the property?
  3. Are the Seller’s payments current?

Once you’ve got answers to those three questions, you can then get to work massaging price and terms to see how they can help you help them.

To prepare you, I’ve put together three real-world seller-financing scenarios you’re most likely to encounter:

Scenario #1: Free and clear properties

This is where they own the properties free and clear. And if they own it free and clear, and they’re open to seller financing, then that’s an easy deal, right?

But wait! Why would someone want to take payments instead of cashing out?

Why would they want money over time, instead of getting all their money right now?

Well, maybe they don’t want to be landlords, but they like the cash flow. Or maybe they’re up there in their years, and they have no use for a chunk of money, but would rather live out their days in extra comfort with some extra income.

Or maybe they don’t want to pay the taxes on the whole amount!

Whatever it is, their reason doesn’t really matter. And I can tell you there are more reasons than you can conceive of as to why they would do this, as opposed to why they wouldn’t. But don’t try to figure it out.  Just ask!

Don’t waste your time trying to figure out why a seller won’t finance your deal, and instead focus on figuring out why they will.

Scenario #2: An existing loan on the property

The properties that you come across are not always going to be owned free and clear. If there is a loan in place, don’t complicate it. Just leave the loan there and transact what is known as a “subject to” deal.

“Subject to” means you take ownership “subject to” the existing loan, and at the end of the transaction, you’re on title, but the loan remains in the seller’s name.

Essentially you’ve become their “loan sitter.”

You make the payments on time, and in full, and from there you’re free to flip the property and pocket the profit, or you could rent it out and hold on to it for your own cash flow.

So why would a seller let you be on title while they’re still responsible for the loan?

Remember, don’t try to figure out why they won’t, but rather focus on why they will. Get out of your own way and don’t get caught up negotiating in your mind on the seller’s behalf! That’s their job. You do yours.

Scenario #3: An existing loan and then some

So they’ve got a loan, but they want some money above that. In those cases, look to the seller again, and present them with the option to carry back an additional loan.

If they agree, you can either keep the loans separate, and you can pay the bank, and you can pay the seller separately. Or, my preference is to wrap them all up into one loan using a third party servicing company, who then distributes the payments to each lender accordingly. It’s tidy, it’s simple, and it’s safer.

If after you’ve accessed all the funds the Seller can provide, then you may actually need to bring some money to the table to close the deal.

My clients and students have been finding this to be the most common scenario.

So, even with the most creative seller finance structures your imagination can conjure up, it’s a common occurrence where you’ll need some money. But, It doesn’t have to be your money!

I’m referring to that “almost free” source of money I mentioned earlier. My clients and students are using business credit to close these types of deals, as well as to fund their marketing, rehab materials and pretty much all business expenses.

They’re getting started here, completing a quick 60-second application, inputting their credit score, and stating their income, and in as little as 24 hours they’re receiving approval for $100,000 to $150,000 at 0% interest for the first 12-18 months to use in their real estate investing business.

And those funds are landing in their bank account in as little as 7 days after approval!

Now, let me clarify the “almost free” part. There is a flat-fee charged up front (and you can pay that fee out of your business credit line, so no upfront money is needed) and when you take into consideration the 0% interest rate and the average loan amount, my clients and students are paying in the ballpark of 2 to 3 ½ % for these funds.

Based on what they’ve found, it’s the cheapest money in the market place, not to mention the easiest to access. Again, I like easy.

The bottom line is their real estate investing businesses are growing because of these two creative ideas; seller-financing and business credit.

See! It’s never a money problem, merely an idea problem.

Check back for more creative money ideas, but in the meantime start asking the seller of every deal you come across to carry back some or all of the financing, and click here to get access to these cheap and easy funds while they’re still available.

The more you creatively fashion deals involving the sellers, the less of your own money that you need and use.

But understand that this is a skill. It takes patience and practice to develop. Stick it out, because it’s worth it to practice and get this down. Those who figure it out can be found sipping fruity cocktails on remote beaches whenever they feel like it.