Creative real estate investing is any non-traditional method of buying and selling real estate. Typically, a buyer will secure financing from a lending institution and pay for the full amount of the purchase price with a combination of the borrowed funds and his own funds (or his "down payment").
One way to buy a home is to pay cash. But the typical family is not in a position to do this, and thus must arrange to finance its home purchase. Most families can afford only a modest down payment and are forced to secure the remainder of the purchase price by mortgage from some lending institution. The larger the down payment, the smaller the total interest payment over the term of the mortgage. Buyers, however, should not use all of their savings for the down payment, thus depriving themselves of any reserve to fall back on if extraordinary expenses arise or income falls in the future.
Read more about Creative Real Estate Investing: Bird-Dogging, Seller Finance or "subject To", Options, Lease Option, Sandwich Lease Option, Short Sale or Preforeclosure, Wholesaling, Hard Money Lenders, Tax Liens, Paper/notes/mortgage Investing, Flipping, Land Trust
Famous quotes containing the words creative, real, estate and/or investing:
“Almost any biographer, if he respects facts, can give us much more than another fact to add to our collection. He can give us the creative fact; the fertile fact; the fact that suggests and engenders.”
—Virginia Woolf (1882–1941)
“A full belly to the labourer was, in my opinion, the foundation of public morals and the only source of real public peace.”
—William Cobbett (1762–1835)
“Not a flock of wild geese cackles over our town, but it to some extent unsettles the value of real estate here, and, if I were a broker, I should probably take that disturbance into account.”
—Henry David Thoreau (1817–1862)
“After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world.”
—Calvin Coolidge (1872–1933)