Ten Methods Of Creative Financing

Written by Steve Gillman

Do allrepparttar creative financing techniques you hear about really work? Yes, actually. They probably have all worked somewhere for someone at least once. The point isn't if they will all work for you. The point is to know what is possible, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking.

1. Hard money lenders. You can ask around or find these online. They specialize in short-term loans at high interest. You typically use this type of financing for a "fix and flip." You can often getrepparttar 147582 money fast, and if you make $30,000 on a project, who cares if you paid $10,000 interest in six months.

2. No-doc and low-doc loans. No (or low) documentation of your income or credit required. Again, you can find banks that do these online now. The catch is that you will only be able to borrow up to 80% ofrepparttar 147583 purchase price or property value. If you have 10% in cash, you might be able to borrowrepparttar 147584 other 10% from a friend orrepparttar 147585 seller.

3. Seller-carried second mortgages. Sometimes a bank will loan you 90%, and allowrepparttar 147586 seller to take back a second mortgage from you for 5%, leaving you needing only 5% for a downpayment.

4. Land contract. Called "contract for sale" or other names as well, this just meansrepparttar 147587 seller lets you make payments, and deliversrepparttar 147588 title upon payment in full. I sold a rental this way for $1,000 down, because I wantedrepparttar 147589 9% interest, andrepparttar 147590 higher price I got this way.

5. Credit cards. If a seller will take $10,000 down on a fixer-upper that you expect to make $20,000 on, why not use credit cards? This is a true 0-down deal for you, and if you turnrepparttar 147591 project in six months, you will have paid $900 in interest on an 18% credit card. Don't let $900 get inrepparttar 147592 way of making $20,000.

Bad Credit? With Poor Credit You Can Still Refinance Or Get A Home Equity Line Of Credit

Written by Carrie Reeder

Have you decided to refinance your home or apply for a home equity line of credit but worry about your credit rating? Even with poor credit it is possible to refinance your existing mortgage or obtain a home equity line of credit. New practices inrepparttar lending industry have made it easier than ever for you to refinance your mortgage or get a home equity line of credit. If you have adverse credit, specialized lenders can help you findrepparttar 147551 loan package your need with an interest rate you can afford.

Refinancing your home loan can allow you to make improvements to your home or consolidate debts. Some lenders offer loans up to 125% of your home's value even if you have less than perfect credit. Your current mortgage terms and interest rate,repparttar 147552 length of time you intend to stay in your home, andrepparttar 147553 level of debt your currently have are all factors to be considered in makingrepparttar 147554 decision to refinance your mortgage. If you have equity in your home, you will often receive a lower interest rate than those with little or no equity.

Home equity lines of credit are revolving accounts with your home serving as security forrepparttar 147555 loan. When you get a home equity line of credit you are approved for a certain amount of credit. The maximum amount you can borrow at a given time will depend on your credit limit. Typically, a home equity line of credit will have a variable rate of interest although some lenders may offer a fixed rate as well. You will have an amount you can borrow at any given time and you may not borrow more until a certain amount is repaid. Often you will have specific times as to when you may borrow money from your available credit limit.

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