Creative Finance Strategies Part 2

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More Creative Finance Strategies…by Steve Hipple

  • Syndicate mortgage could be considered ‘next level’ investing and combines multiple lenders on one property and mortgage.  Syndicate mortgages are powerful and allow lenders with smaller amounts available to join other lenders for the common goal of acquiring an asset.  Lenders are typically silent partners, so no control over the asset and can provide a nice passive income.  Contracts and agreements can be complex, interest rates and terms vary greatly.
  • Interest-only payment is a way of increasing your monthly cash flow on a property.  Interest-only payments are common on second mortgages and can be beneficial to both lender and borrower.  In appreciating markets, interest-only payments allow the investor opportunity to make money with appreciation and cash flow.
  • Credit cards are no longer the evil influence our parents taught us.  They are a very powerful business tool and provide access to capital to almost everyone.  Credit cards are unsecured or revolving lines of credit, and yes, they may have high-interest rates associated with them. However, you only pay interest when you carry a balance.  There are credit cards with zero percent interest rates for many, many months.  

Credit cards have so many benefits, and here are a few of them: 

  • No charge or low fee balances transfers 
  • 0% interest rate for introductory offers
  • 30 days interest-free
  • Cashback on purchases
  • Introductory points and ongoing points 
  • Travel rewards such as free flights, free hotel, or upgrades.
  • Credit cards offer so many perks that can be enjoyed for credit savvy consumers!

Many more creative financing types are available, only limited to what is agreed to by the buyer, seller, and lender.  As in any real estate transaction, be sure to consult your local attorney and accountant to ensure your agreement is legal and ethical.


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