In today’s recession-hit economy, where due to the credit crunch banks have stopped lending money as they used to for fear of default and bad debt, some people feel that financing has become difficult. But that is not the case, financing continues, the difference is that today there are more creative forms of financing and the bank is no longer the only option.

turning

This is a method that is gaining popularity among many real estate investors. For example, let’s say you want to buy your dream home and it’s currently for sale, but you don’t have the money available to put down a down payment. The solution is simple, flip a property. Flipping involves buying properties that are being foreclosed (mortgage not completed, therefore sold), these properties are usually sold at prices lower than they are worth, as banks seek to minimize losses. Buyers often buy these properties and then renovate or repair them and then sell them for a profit on their investment. These types of properties are usually listed in newspaper classifieds, so buyers should be aware of when such a property comes on the market and then take advantage of the opportunity.

looking for options

This is a real estate financing method in which the buyer and seller agree on a fixed price for the property. The buyer is then allotted a period of time during which he can meet the requirements of the agreement between him and the seller and has the option of buying the property himself or refusing to buy it. Although this method of financing was not popular before, it is becoming more and more common as banks and other financial lending institutions do not provide the same level of financing as they used to.

seller finances

This is another new form of creative financing that is becoming increasingly popular with investors. In this method, the seller himself becomes the lender, thus eliminating the need for any financial institution. In this type of financing, the agreement is made directly between the buyer and the seller, eliminating any intermediary and resulting in better communication between the two parties. The Seller finances the buyer so that the buyer can reimburse him in installments, deciding between them the interest rate and the expected term of the payments. Usually, the seller draws up a suitable agreement to ensure that if the buyer cannot meet the seller’s requirements, he will have to relinquish the property and any previous payments he has made will not be returned.

Rent multi-bedroom houses

Another increasingly popular method is to buy a property near universities and colleges as these houses or apartments are in high demand due to the proximity of universities and these are highly sought after by college students and are even willing to pay. rent higher than the market price for such places to have their home closer to the universities.