Friday, January 23, 2009

Methods of Creative Financing

Creative financing is all about using a financial means other than the traditional ones like mortgage loans etc. to own a real estate or any other asset.  Creative financing is the word which is fast catching up. Individuals are using creative financing to acquire different types of assets. 

Any legal method which delivers fast cash comes under creative financing. There are different ways by which you can do this. 

Look around your home. Do you owe any antique or any such thing which are of no use to you? If you have, then sell them. If you owe a used car then you have to which is too old to run on roads then contact the dealer and sell it in parts. You are not required to pay a fee if you register your car with a dealer online. You will be amazed to find the number of individuals who are ready to pay for the parts of your used car. 

If you own an unused land then scan it carefully. Find out if it has any wild growth of bushes or trees. If there are any then get them sawed. Sell the woods to earn the money.  
If you own a car which you seldom use then rent it for commercial purposes. And the money that you earn from your vehicle you can pay your mortgage loan or use it to fuel your business needs. 
If you have applied for a new home which is in good shape then rent it and pay a part of the rent towards the mortgage loan that you applied to own the property. 

If you own a land that is on the outskirts of your town then lend it or lease it to a company which is on a look out for such lands. And you can use the part of the lease to pay back the loan amount that you have to pay. 

Consider eighty to twenty home mortgages. This is a combination of two mortgages one primary and the other secondary. This reduces the liability towards a single lender. With this loan you finance hundred percent of the finance and avoid the monthly installments payment. 

Contact the hard money lender. These are the one who lend money at relatively higher interest. They are the lenders other than the banks and private lending companies which operate in the financial market. 
Reach out to your friends and family for the help. Ask them the money that you fall short of and borrow from them the amount on their conditions of return. 

There are many more ways to arrange for the money other than the conventional ones. You just have to be a little more observant and creative. When it comes to creative financing, every thing holds importance and every penny counts. So, look around and pick out the things which you can use to generate the cash that you need. 

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