Other Financing Options for Real Estate Investors
09/08/23 • 42 min
Other Financing Options for Real Estate Investors
In the last several classes, we covered a variety of traditional financing options, including nothing-down financing, low down payment financing, conventional financing, and portfolio loans. These options represent the overwhelming majority of financing options used when purchasing properties.
However, there are a handful of financing options that are used infrequently, but it's still important to be aware of them. In this mini-class, we will discuss these other financing options, including private money, hard money, utilizing partners for financing, home equity lines of credit, owner financing, life insurance, self-directed retirement accounts, subject to and wrap financing, lease-options/lease-purchases, and foregoing financing to pay cash.
Check out the video from this class here:
Other Financing Options for Real Estate Investors - Video
In this class, James discusses:
- Primary financing types that make up 90%+ of all loans
- Creative financing: owner financing, wrap financing, lease-options/lease-purhcases, loan assumption, subject to, etc
- Private financing
- Hard money
- Line of credit (HELOCs)
- Buying properties for cash
- Partnerships (utilizing all the other strategies)
- Portfolio loans
- Life insurance
- Self-directed retirement accounts
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Evansville real estate investor podcast? Book a free consultation to discuss.
Other Financing Options for Real Estate Investors
In the last several classes, we covered a variety of traditional financing options, including nothing-down financing, low down payment financing, conventional financing, and portfolio loans. These options represent the overwhelming majority of financing options used when purchasing properties.
However, there are a handful of financing options that are used infrequently, but it's still important to be aware of them. In this mini-class, we will discuss these other financing options, including private money, hard money, utilizing partners for financing, home equity lines of credit, owner financing, life insurance, self-directed retirement accounts, subject to and wrap financing, lease-options/lease-purchases, and foregoing financing to pay cash.
Check out the video from this class here:
Other Financing Options for Real Estate Investors - Video
In this class, James discusses:
- Primary financing types that make up 90%+ of all loans
- Creative financing: owner financing, wrap financing, lease-options/lease-purhcases, loan assumption, subject to, etc
- Private financing
- Hard money
- Line of credit (HELOCs)
- Buying properties for cash
- Partnerships (utilizing all the other strategies)
- Portfolio loans
- Life insurance
- Self-directed retirement accounts
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Evansville real estate investor podcast? Book a free consultation to discuss.
Previous Episode
Amazing Rental Property Cash Flow Strategy with Ryan Chaw
Home prices are up a lot over the last 10 years or so, interest rates are up even more in the last 18 months or so, and—while rents are up—they’re not up enough to counteract the higher prices and interest rates.
That makes cash flow harder... but not for Ryan and his strategy...
We discuss this method of improving cash flow under "Improve Strategy" when we discuss our 88 cash flow improving strategies, but Ryan really drives home just how amazing it is.
Check out the interview and his website.
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Evansville real estate investor podcast? Book a free consultation to discuss.
Next Episode
Buying Down Mortgage Interest Rates for Real Estate Investors
Buying Down Mortgage Interest Rates for Real Estate Investors
There are several ways to improve cash flow on your rental properties. One option is to put more money down to reduce the amount you borrow. In some cases, this can also improve your interest rate by lowering your overall loan-to-value. However, when comparing putting more money down to buying down the mortgage interest rate, it is usually better to buy down the interest rate for any reasonable holding period. This is true from both a return on investment and improved cash flow perspective.
Learn more about buying down your interest rate in this mini-class.
Check out the video from this class here:
Buying Down Mortgage Interest Rates for Real Estate Investors - Video
In this class, James discusses:
- Buying down mortgage interest rates when buying a rental property
- Improving cash flow by buying down your rate
- You can choose your interest rate by how much you're willing to pay or receive as a credit toward closing costs
- Rate changes for the life of the loan
- What's a point and how do they work?
- What's par rate and why it is critically important to seek clarity from your lender when they quote you a rate?
- What can you do with extra money when buying a rental property?
- Comparing more down payment to buying down your interest rate
- Requesting a buy down table from your lender (and what they look like)
- Plugging numbers into the buy down spreadsheet
- Looking at the cost difference when buying down your rates to various levels
- Selecting where to buy down to
- Simple and compound return on investment calculations done for you
- Putting more down improves cash flow in 3 important ways
- Comparing more down payment to buying down interest rates (not just cash flow... cash flow and equity)
- Temporary solution to buying down rate or pre-paying PMI
- Download the Mortgage Buy Down Spreadsheet
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Evansville real estate investor podcast? Book a free consultation to discuss.
If you like this episode you’ll love
Episode Comments
Generate a badge
Get a badge for your website that links back to this episode
<a href="https://goodpods.com/podcasts/evansville-real-estate-investing-and-real-estate-financial-planning-po-278834/other-financing-options-for-real-estate-investors-34369794"> <img src="https://storage.googleapis.com/goodpods-images-bucket/badges/generic-badge-1.svg" alt="listen to other financing options for real estate investors on goodpods" style="width: 225px" /> </a>
Copy