We learned to use creative tools, such as seller financing, private loans, self-directed IRA loans, lease options, and more.
In this article, I’ll tell you why we prefer creative financing, and I’ll open our toolbox to share 5 of our favorite creative financing tools (a.k.a.
I’ll begin to unpack these creative financing tools by explaining the tool you’re probably all familiar with, traditional bank financing.
A Picture of a Traditionally Financed Closing If you’re going to be able to understand creative financing and explain it to a skeptical attorney, real estate agent, or seller, you need to first understand each piece of a typical transaction.
Power Tool #2: Private Loan From a Self-Directed IRA As you see above, this creative financing tool is structurally very similar to a closing with a bank loan.
This has been the tool that I use the most often from my creative financing toolbox.
Let’s see if Chris can make it even better using another tool — the option to buy.
Try that with a bank loan!
Jim could give Karla an option for 20 years instead of 5.
The question is, can you use any of these tools to build wealth and income for yourself?