Top 10 Reasons to use Creative Finance when Buying Real Estate

1) Minimize Upfront Costs

Creative finance helps buyers minimize the money needed upfront, making it easier to afford the purchase of a property.

2) Leverage Existing Assets

Creative finance allow buyers to leverage other assets for credibility or collateral such as other properties, promise of shared profits, etc to finance a property purchase without having to liquidate those assets.

3) Improve Cash Flow

Creative finance buyers improve cash flow by doing more deals without large down payments and by spreading out payments over time. Some deals have incredibly favorable terms which allow significant immediate cash flow.

4) Avoid Traditional Lending

Creative finance beats traditional lending methods by allowing buyers to obtain financing without going through the process of applying for a mortgage. Some buyers are well-equipped to pay, but don't satisfy banks' inflexible qualification requirements.

5) Increase Purchasing Power

Creative finance buyers can often afford bigger deals than others. More expensive properties are affordable with the right payment plan, and there's often a magic number for both buyer and seller that wins vs traditional financing.

6) Reduce Risk

In some circumstances, creative finance buyers reduce risk by sharing the burden of ownership with other investors or by spreading out the costs of the purchase over time.

7) Improve Creditworthiness

Creative finance strategies enable buyers to improve their creditworthiness by demonstrating their ability to manage a variety of financial assets and obligations.

8) Take Advantage of Tax Benefits

Creative finance strategies offer tax benefits that help buyers save money on their overall purchase.

9) Access Unique Investment Opportunities

Buyers gain access to unique investment opportunities not otherwise available through traditional financing methods. While banks and realtors are great, not everything fits in that box.

10)Build Relationships

By working with other investors or financing partners, buyers build relationships beneficial for future business endeavors.