#233: How Creative Financing Unlocks Deals When the Market Says No — Landon Moore

So, you know, for those who don't know what creative finance is, uh, what, what is that?

Yeah.

I mean, creative finance is really, it's, it's a way to acquire real estate that is outside of the traditional norms where you need to put the 10, the 15, the 20, and even more percent down to acquire a property.

S- you know, y- you could f- you could look at it as subject to, which is subject to the existing mortgage, or AKA is called a wraparound mortgage, where you're taking over the payments of someone else's mortgage.

And we can talk about a specific deal today-

Yeah

... that I've done that-

Perfect

...

I'm actively negotiating right now too, and, you know.

And then alternatively, creative finance could look at it from seller financing.

Seller financing is where you graduate the landlord to become the lender.

Or if they own the property free and clear, it was their primary home, you graduate them to them being the bank, and you make monthly payments to them every single month instead of to Wells Fargo or Chase or whomever that lender is and going out and getting a new loan.

And, you know, there's tremendous benefits for both.

Are there risks? 100%, and that is the biggest thing to understand is, are those risks, and how to protect your sellers in either type of transaction.

And so that's the, that's the critical thing.

But creative finance is really anything.

What's really cool about for me is I'm able to blend my engineering, critical thinking, and problem-solving, um, prowess from my education, from my college career, my college degree, bring it to a landscape that is real estate, and be able to problem solve what the best solution is for that particular prop- subject property and those sellers based on what tomorrow looks like for them.

You know, sometimes it is a, sometimes creative finance is a square peg for a round hole when it comes to that acquisition for that family because they need X, Y, and Z.

And I'll be the first to admit, it's not the best fit for you, you know? But many times, there's so many problems that I've solved with creative finance for retirees, for tired landlords, through foreclosures, for all of these different things that can be a great fit, and they're maximizing the sale of their home, be it through seller finance with an interest rate or through a wrap where they have no equity and they were gonna write a check to sell the house.

So it's, you know, there's so many different ways that you can look at accomplishing that.

Yeah.

So let's break down a specific deal just so, you know, for context.

What does these numbers look like?

Yep.

So, you know, for those who don't know what creative finance is, uh, what, what is that?

Yeah.

I mean, creative finance is really, it's, it's a way to acquire real estate that is outside of the traditional norms where you need to put the 10, the 15, the 20, and even more percent down to acquire a property.

S- you know, y- you could f- you could look at it as subject to, which is subject to the existing mortgage, or AKA is called a wraparound mortgage, where you're taking over the payments of someone else's mortgage.

And we can talk about a specific deal today-

Yeah

... that I've done that-

Perfect

...

I'm actively negotiating right now too, and, you know.

And then alternatively, creative finance could look at it from seller financing.

Seller financing is where you graduate the landlord to become the lender.

Or if they own the property free and clear, it was their primary home, you graduate them to them being the bank, and you make monthly payments to them every single month instead of to Wells Fargo or Chase or whomever that lender is and going out and getting a new loan.

And, you know, there's tremendous benefits for both.

Are there risks? 100%, and that is the biggest thing to understand is, are those risks, and how to protect your sellers in either type of transaction.

And so that's the, that's the critical thing.

But creative finance is really anything.

What's really cool about for me is I'm able to blend my engineering, critical thinking, and problem-solving, um, prowess from my education, from my college career, my college degree, bring it to a landscape that is real estate, and be able to problem solve what the best solution is for that particular prop- subject property and those sellers based on what tomorrow looks like for them.

You know, sometimes it is a, sometimes creative finance is a square peg for a round hole when it comes to that acquisition for that family because they need X, Y, and Z.

And I'll be the first to admit, it's not the best fit for you, you know? But many times, there's so many problems that I've solved with creative finance for retirees, for tired landlords, through foreclosures, for all of these different things that can be a great fit, and they're maximizing the sale of their home, be it through seller finance with an interest rate or through a wrap where they have no equity and they were gonna write a check to sell the house.

So it's, you know, there's so many different ways that you can look at accomplishing that.

Yeah.

So let's break down a specific deal just so, you know, for context.

What does these numbers look like?

Yep.