Why Work with Creative Financing Real Estate Investors

Class Recording

May 9, 2023

The following is an AI-generated summary of what is in the video:

  • Real estate agents, lenders, and accountants can benefit from working with real estate investors that focus on creative financing.

  • Creative financing real estate investors are interested in various types of financing, such as owner financing, wrap financing, lease-to-own, bond for deed, contract for deed, installment land contract, and buying properties subject to existing financing.

  • Creative financing real estate investors tend to be more entrepreneurial and put in more effort than money.

  • Working with creative real estate investors can lead to referrals of retail properties to list, optimize their portfolio, and sell properties creatively.

  • Referrals of retail properties to list are possible because creative financing deals may not always work out, and some sellers may want to sell their properties using traditional methods.

  • Working with creative real estate investors can help agents and lenders educate their traditional real estate investor clients about other financing options and build credibility, trust, and rapport with them.

  • However, it's not directly teaching content that will result in direct real estate brokerage transactions and new loans.

  • Working with creative real estate investors has some downsides, including limited property types, unreasonable creative financing property requirements, and that they tend to gravitate toward more creative financing for future purchases.

  • It's essential to balance teaching creative financing with other topics and not focus on it exclusively.

  • Agents and lenders should consider the effort required to handle creative financing deals and the potential for repeat business from creative financing real estate investors.



James Orr
The Real Estate Financial Planner™