The Ultimate Guide to Creative Financing

Want to learn more about creative financing for real estate investors? Are you curious about owner financing, seller financing, contracts for deeds, all inclusive deeds of trust (AIDT), wrap around mortgages, subject to, installment land contracts? Learn about these and more in The Ultimate Guide to Creative Financing.

Creative Financing
Creative Financing

Class Recording:
Creative Financing 101

Interested in learning about all the different types of creative financing? Then check out this special real estate seminar I gave on the six types of creative financing.

Also, considering checking out additional creative financing classes.


I strongly recommend that you always get the advice of and use an attorney on creative transactions.

These can be complex, nuanced transactions that—if done incorrectly—can get you in expensive trouble.

Win-Win or No Deal

“With great power comes great responsibility.” – Spider-Man

Yes, you could probably structure transactions that are not win-win where you take advantage of people… don’t do it!

If I hear about it… you’ll be banned from our investor meetings and removed as a member and from this website.

You should only do deals that are win-win for all involved… win-win or no deal.

Benefits of Creative Financing

…and why you might want to consider doing these types of deals.

  • Little or no down payment required
    • Same benefit as Nomad™ (except you don’t need to move in)
    • Traditional down payment – usually 20%-25%
      • Can do it with less in some circumstances
  • Possible to buy without bank qualifying
    • Can buy with credit blemishes (bankruptcy, foreclosure, short sale)
    • Can buy without income qualification
    • Always disclose material fact
  • Buy in an LLC or other entity up front
  • Amplified (some would say improved) Return on Investment
  • Walk away – see my presentations on Warning: The Dangers and Risks of Real Estate Investing and Reducing Risk While Nomading™
  • Self Directed IRA/Self Directed 401K without 30-35% down or partners
  • Partnerships (without a credit partner)
  • Could allow you to buy a property while waiting to qualify for more traditional purchase
    • Increase income, save down payment, job history
  • Less likely to have Capital Expense challenges because model strongly suggests inventory turn-over

Downsides of Creative Financing

…and why you might want to consider NOT doing these types of deals.

Download Marketing Modeling Spreadsheet

  • Limited selection of properties
    • Buying traditionally allow you to pick the best properties from the largest selection
  • More labor intensive to buy this way
  • Lower ROI for time invested
  • It is possible to structure them in ways that make them questionable
    • Don’t do that!

Jargon Versus General Discussion

  • For this class—because it is YOU—I’ll be using jargon
    • Subject to, ARV, LTV, even down payment, return on investment, etc
  • When talking to Sellers and presenting… use more general terms and explanations
    • I’ll buy it “subject to” and give you $5K for your equity
    • I’ll buy it and I’ll take care of your mortgage payments and maintenance and I’ll give you $5K at closing
    • See my class on Seller Presentations for more information.
  • General discussions over describe more than one technical strategy
    • “What if I covered the monthly payments on your loan and the maintenance on the property so you wouldn’t have to worry about that? Is that something that would work for you?”
    • Discuss: Which type of creative financing am I referring to here?

You Are Not Your Sellers

Remember, you're not your sellers. Whether or not you would do something is not a reflection of what others would do.

Why Would Sellers Do Creative Financing?

  • To solve a problem they have
  • Can’t afford house anymore
  • Stop making two mortgage payments
  • Negative emotions associated with house like a divorce or death
  • Access equity quickly and/or easily
  • Don’t want to manage it and/or maintain it
  • Want an income stream from their equity
  • What would friends, family, neighbors think
  • To get their price (even if it means being flexible on terms)

Why Wouldn’t Sellers Do Creative Financing?

  • Not a good solution for them
  • Fear
    • Tenant trashing the place, not paying, calling with repairs in the middle of the night
    • What would friends, family, neighbors think
  • Unrealistic expectations
    • I am going to get a cash offer for full price any day now
    • My home is nicer than all the others on the block
    • My agent is just not marketing it well enough so I’ll find another agent
    • I bought it for $X, so if I were to sell it, I’d need to get $X plus $Y
    • I’d want 20% (or more down)
  • They need or are willing to wait for more traditional loan or cash transactions

Creative Buying Process

Creative Buying Process
Creative Buying Process

This is an example of the creative buying process. Many folks will close the transaction BEFORE occupying the property with a tenant or tenant-buyer but it is ideal if you can line that up before closing. The ideal is represented in the process above.

Creative Financing FAQs Matrix

Creative Financing FAQs Matrix
Creative Financing FAQs Matrix
Creative Financing FAQs Matrix Legend

  • Y = Yes
  • N = No
  • U = Usually, but not always
  • S = Sometimes, but not usuaully

These are intended to be general guidelines.

There are exceptions and unusual situations for every case… including this statement

Think of this like a puzzle: You’re trying to minimize and mitigate your risk, maximize profit but make a win-win deal. How could you structure it to accomplish that?

You need to understand how the different pieces fit together to accomplish that.

Fees Collected From Your Tenant Buyer

Some people like to look at that as money to cover the costs of acquiring the deal: marketing, down payment, closing costs, attorneys fees, loan costs, etc.

Some people like to look at as improved cash flow: $6,000 down from your tenant buyer for a year long lease purchase is really $500 extra per month cash flow.

This is like selling your home for $6,000 less if you applied this amount toward purchase (which is negotiable, but recommended).

Some people look at it like an security deposit on steroids to protect your from possible tenant challenges.

Get INSTANT Access to this AND...
100+ Additional Real Estate Investor Class Recordings, Downloads and More...
...and all for the cost of a couple burritos.

A veritable Treasure Chest of goodies primarily for Buy-And-Hold Real Estate Investors, Nomads™ and House Hackers.

You get 1 full-year of access to:

  • Over 100 premium real estate investing classes
    • Over 200 hours of video training
  • Downloads:
    • The World's Greatest Real Estate Deal Analysis Spreadsheet™
    • How to Improve Cash Flow on Rentals Checklist
    • Rental Property Bookkeeping and Accounting Spreadsheet
    • Qualified Business Income Deduction with Rental Property Log
    • Interest Rate Buy-Down Spreadsheet
    • Off Market Deal Business Marketing Tracking Spreadsheet
    • 240-page book with detailed analysis of 10 different investing plans
  • 20 "secret" bonus classes - another 40+ hours of video training... and some of my best work
Get more info or... Get Instant Access Now - Just $27

Here's a list of the classes included:

  1. 10 House Hacking Tips and Tricks for Real Estate Investors
  2. 10 Things I Wish I Knew Before Starting to Invest in Real Estate
  3. 10 Tips to Get Offers Accepted in Hot Markets
  4. 8 Money Saving, Risk Reducing Real Estate Investor Insurance Tips
  5. 9 Nastiest Nomad™ Mistakes
  6. Advanced Lease-Option Deal Analysis
  7. Advanced Real-Time Deal Analysis with Brian's New, Improved Spreadsheet
  8. An Alternative to Cash Flow - Saving Money With Rental Properties
  9. Analyzing Deals 101: an Intro to Cash on Cash Return on Investment
  10. Analyzing Deals 102 - Fix and Flips
  11. Analyzing Deals 201 - Selling with Lease-Option
  12. Analyzing Deals 303 - Subject-To and Lease-Options
  13. Analyzing Multi-Family Properties
  14. Analyzing Single Family Homes, Condos, Townhomes and Multi-Family
  15. Arguably the Best Class of the Year - Part 1
  16. Arguably the Best Class of the Year - Part 2
  17. Arguably the Best Class of the Year - Part 3
  18. Arguably the Best Class of the Year - Part 4
  19. Arguably the Best Class of the Year - Part 5
  20. Ask Me Almost Anything
  21. Asset Allocation Secrets of Real Estate Investors
  22. Better Credit for Better Deals: Improving Your Credit Score
  23. Beyond Cash Flow - The Return on Investment Quadrant™
  24. Bookkeeping and Accounting for Real Estate Investors
  25. Buying Down Interest Rates
  26. Buying New Houses as Investments and Nomads™
  27. Buying Properties on Lease-Option, Lease-Purchase or Subject To
  28. Cap Ex – The Silent Killer
  29. Cash Flow Power Meter™
  30. Cash Flow Versus Appreciation
  31. Catch Up Nomad™
  32. Closing Real Estate Deals
  33. College Nomad™ Overview
  34. Comparable Sales 101
  35. Contract to Buy and Sell Real Estate in Detail
  36. Contract to Close
  37. Converting Your Owner-Occupant Property To A Rental
  38. Creative Financing 101
  39. Crushing Your Real Estate Goals Using EV
  40. Deal Alchemy™
  41. Deal Analysis 301 Multi-Family
  42. Deal Analysis Post-Coronavirus
  43. Establishing Your Buying Criteria Workshop
  44. Evaluating Mortgages and Comparing Lenders
  45. Everything You Learned About Deal Analysis is Wrong - ROIQ+R™
  46. Financial Mindset and Overcoming Fear
  47. Finding Amazing Real Estate Investor Deals
  48. Fix and Flip Case Studies
  49. Fixer Upper Nomad™ Overview
  50. Go to College or Skip It to Invest in Real Estate
  51. Grit and Persistence - Brian's Story
  52. Hard and Private Money 101
  53. House Hacking versus Nomad™
  54. How to Analyze Deals with Brian's Spreadsheet
  55. How to Be the Ideal Client That Realtors Call First with the Best Deals
  56. How To Do A Deal Using Self-Directed 401Ks and Self-Directed IRAs
  57. How to Get Down Payment
  58. How to Get Your Next Deal Done After Coronavirus
  59. How to Go Broke Using the BRRRR Strategy
  60. How to Improve Cash Flow Workshop
  61. How to Nomad™ without Moving into Properties
  62. How to Select a Real Estate Agent
  63. Improving Cash Flow by Buying Down Interest Rates
  64. Insider Secrets of Experienced Home Inspector for Investors
  65. Interest Rate Buy Down Spreadsheet
  66. Interest Rate Scenarios for Nomads™
  67. Is Nomad™ Dead?!
  68. Just One More Rental Property - Part 1
  69. Legacy Nomad™ Overview
  70. Line of Credit Magic
  71. Little Down Nomad™ Overview
  72. Live Deal Analysis
  73. Looking at Profitable Investment Properties Tips and Tricks
  74. Low and Nothing Down Strategies That Work In Today's Market
  75. Low-ball Offer Case Studies
  76. Making Strong Offers That Get Accepted
  77. Negotiating Win-Win Inspections for Maximum Benefit
  78. Nomad™ - Ask Me Almost Anything
  79. Nomad™ 101
  80. Nomad™ 101 FAQs
  81. Nomad™ by Proxy
  82. One Crazy Night - Brian Solves All Your Real Estate Problems
  83. Owner Financing
  84. Paying Off Debt Optimization for Real Estate Investors
  85. Presenting a Deal to Potential Partners
  86. Presenting A Wholesale Deal To Investors
  87. Pros and Cons of Every Real Estate Investing Strategy Compared
  88. Real Estate Appraisals for Real Estate Investors
  89. Real Estate Investor Buying Process Overview
  90. Real Estate Investor Financing After Coronavirus
  91. Real Estate Investor Horror Stories
  92. Real Estate Investor Loan Comparison Deep Dive
  93. Reducing Risk While Nomading™
  94. Rental Property Tax Deductions
  95. Return on Investment and Return on Equity
  96. Rules of Thumb and the Sacred Numerology of Real Estate Investing
  97. Seller’s Property Disclosure Case Studies
  98. Should I Sell My Rental? ROTNEQ+R™
  99. Should I Wait for a Real Estate Dip to Invest in Real Estate?
  100. Side Hustles: Earn Down Payments Faster - The Amazon Class
  101. Strategies to Get the Lowest Monthly Payment When Buying
  102. Stress Testing Your Real Estate Investing Portfolio - Part I
  103. Structuring Partnerships - Part 1 of 2
  104. Structuring Partnerships - Part 2 of 2
  105. The Case AGAINST Investing in Real Estate
  106. The Two Best Investing Strategies For Our Market Right Now
  107. The Ultimate Guide to Earnest Money
  108. The Ultimate Guide to Market Corrections
  109. The Ultimate Guide to Private Mortgage Insurance
  110. The Ultimate Guide to Rent Comps
  111. The Ultimate Guide to Should I Pay Off My Mortgage
  112. The Ultimate Guide to the BRRRR Strategy
  113. The Ultimate Guide to VA Loans
  114. The World's Best Real Estate Investing Goal Setting Class
  115. Unleashing the Secret Power of Debt-To-Income for Real Estate Investors
  116. Using Poker to Make Real Estate Decisions
  117. Wait! Before You Make That Offer...
  118. Warning - The Dangers and Risks of Real Estate Investing
  119. What Happens If Values and Rents Don't Always Go Up As A Nomad™
  120. World's Greatest Deal Analysis Spreadsheet Unleashed
30 Day Money Back GuaranteeAnd, it is all covered by an unconditional 30-day money back guarantee... try it for 30 days and if you don't agree these are some of the best real estate investing training classes and tools you've ever seen, at any price... simply request a full, no-questions-asked refund.
Get more info or... Get Instant Access Now - Just $27

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.