The biggest misconception about real estate is that it is a savings game. This couldn’t be further from the truth. It’s not all about capital, and there are more options out there than you think. And this series of vlogs and blogs are designed to shed light on just that.
With that said, bear this in mind. There are rules to this shit.
and The 4 rules of creative investing are:
- Find even better deals
- before: you were only looking for the deals now you could afford
- after: your financing IQ has increased and you are a more savvy investor. Therefore, you can and MUST start looking for better deals.
You need to change your mindset away from going for the deals you can afford because now you can afford a higher range of deals. And since creative investing comes with its own costs, in order to mitigate those costs you must come up with even better deals.
2. Be conservative and assume for the worst.
In your investment analysis, don’t forget that Murphy (from Murphy’s law) may very well come knocking on your door. So account for Murphy, and assume for the worst.
3. Creative Financing requires sacrifice.
This is NOT a get-quick-rich scheme. This is a be patient, persistent, disciplined and detailed, and get rich slow scheme. All creative financing does is put more tools in your toolbox, so that you have less barrier-to-entry towards deals, by providing you with more ways to get access to the capital you need to close more deals.
4. Creative Financing does not mean investing without an emergency fund.
The last thing I, as a real estate agent, would suggest to my clients is to throw in all their savings on a downpayment.
I would recommend this against this unless you are absolutely certain that you will get your money back soon enough. For instance, if you have some sort of approval from the bank on a future refinance, then there’s a very high chance you will be getting a fat stack that will ensure security in the near future
Creative Financing can also mean you don’t necessarily have to put all your savings into…