Embracing the unknown may be the hardest thing you ever do.
It's like standing at the edge of a fog-filled forest, knowing that you must step into the murkiness for your own good, yet the road is unclear and the destination is hard to see.
The first step is always the hardest; it's a leap of faith.
The first step is when you give up on the “familiar” and the “secure.” It’s an act that isn't just about taking a physical step; it's the start of a mental journey. It requires acknowledging that the familiar ground that you’ve used to build your understanding and expectations, will no longer be below your feet.
In its place is the potential for growth, learning, and experiences that can reshape your life in ways you can’t even begin to imagine.
This step into the unknown is most notable for the sense of fear that everyone gets when they first start. But it's exactly this fear that signals the significance of the journey. BUT it’s this fear that stops most people – maybe it even stops you – from daring to move forward.
By embracing the unknown, we open ourselves to the vastness of possibilities, and to lessons that only this path can teach. As daunting as it may seem, the journey into the unknown is a journey towards discovering new aspects of ourselves, uncovering strengths we never knew we had, and ultimately, it's a journey that shapes us into better people with more choices in our lives.
Embracing the unknown, therefore, while it may be the hardest thing you ever do, is also likely to be the most rewarding.
The quest for financial freedom can lead us down familiar paths that may have worked for us in the past, but what if the real opportunities lie in roads less traveled?
One road less traveled is in creative financing. It's how to start investing.
Creative financing (especially in real estate investing) is BURDENED with untapped potential. That potential remains untapped because most people don’t understand it.
Sometimes I wonder if I have so much success using creative methods to invest in real estate because there’s not a lot of competition. Sure, there's plenty of competition in real estate investing, but the creative investor (like more than 10,000 people around the country) can solve issues that normal investors can only dream about.
And because people don’t understand how to use creative financing to their advantage AND because they aren't willing to learn it, the rewards of investing in real estate stay out of their reach.
Maybe you’re one of these people. You want a better life. You want more money. You want to use less money to reap higher rewards, but you still don’t use the tried and true techniques that will get you everything you want.
And it’s your loss.
And it’s all because it seems new to you.
The reality of creative financing like subject-to transactions or seller financing is that it's been around for hundreds of years, has been legal for even longer, and is NOT going anywhere soon.
You might find yourself defaulting to traditional financing because you don’t understand creative financing and are afraid of answering questions that can get you started in investing just because you don’t know how to find all the answers.
The reality is that you don’t need all the answers to get started.
You just need to get started.
Creative Financing: The Art of the Possible
Forget the conventional way of real estate that’s tied to 20% down payments and a 30-year mortgage. Creative financing opens doors to possibilities you may never have thought to knock on.
Picture a world where buying property doesn't hinge on traditional loans.
Seller financing makes this a reality, offering flexible terms that are better for both seller and buyer AND that outshine the limitations of conventional loans. This isn’t just about buying and selling; it's a revolution in how we approach property transactions.
What’s subject to in real estate?
These transactions, where you take over an existing mortgage, may seem daunting but are rich with potential. They encourage us to look beyond the norm, to understand and use risks to our advantage, even when the full picture isn't clear.
You’ll hear a lot of people say that taking over someone else’s mortgage is illegal. But not only is it legal, it’s currently used in all 50 states. Anyone who does subject to transactions is going through escrow and title companies, using transaction coordinators, and making payments just like anyone using traditional financing.
The biggest difference is that the creative investor doesn’t have to deal with the headache that normal mortgage companies will put you through.
The legal aspects can be seen as roadblocks because you don’t exactly know why people say it’s illegal, and you don’t know how to answer that it is legal. So, you don’t act on life-changing opportunities.
But just because you may not understand how smoking indoors in public buildings became illegal doesn’t mean that you choose to smoke indoors anyway…
We all live our everyday lives being dictated by laws that we don’t even know exist, but this doesn’t stop us from living our lives and doing what we think is best for our lives.
In reality, the confusing legalities of creative transactions can be navigated with knowledge and the right mindset. Terms like 'due-on-sale' lose their intimidation factor when approached with an informed strategy and a transaction coordinator, proving that not having all the answers isn't a barrier to success.
The Ethics of Creative Investing and Creative Financing
Protecting the interests of all parties is the cornerstone of ethical investing. It’s not merely about deal-making and profits; it's about creating transactions that are equitable, secure, and beneficial, even in the face of uncertainties.
That’s part of the reason people use creative financing in the first place.
The “typical way” of buying real estate, for example, means that the average person takes on the debt of a 30-year mortgage at rates that only benefit the banks.
If you’re like everyone else in this past year who didn’t necessarily make any more money than they used to, but has watched the price of everything else jump up, then you have less spending power than you used to.
Right now, Maricopa County, AZ currently has 17,847 foreclosure listings according to the HUD. Those are people who are losing their homes because they no longer have the money to pay for them, can’t pay the mortgages back even though they may have been doing it faithfully for years, and can’t sell their homes to get out of them.
So, they’re doomed to have a horrible mark on their credit, losing their housing and no one can help them who doesn’t understand creative financing.
That’s why we learn creative investing: to help people who want out of their homes and help our own families by providing for them.
Sounds beneficial – and ethical – to everyone involved.
Finding Success When Others Don’t
I’m all about real-world success stories.
Case studies like these aren’t about showing how somebody striking it rich overnight. They're about individuals who ventured into the unknown of real estate and found success, despite not having all the answers initially.
This is all important to you because it helps you (and me) realize that the more you look into creative financing, the more opportunities you’ll start to see where you can use it.
It's a journey not just about quick profits, but about building a sustainable future, step by uncertain step.
The Evolving Landscape of Real Estate Investing
Creative financing is set to play a pivotal role in the future of real estate investing. It's an area requiring adaptability and a willingness to embrace change.
As the markets change, creative financing can bend and adapt, where other kinds of financing can not.
Creative real estate investing is more than a strategy; it's a journey of discovery, a path to financial freedom filled with unknowns and untapped potential. It invites you to challenge the current status and unlock opportunities that many never even consider.
And because people don’t consider this a possibility, they don’t get to reap the rewards.
So, how do I get started investing in real estate?
It doesn’t have to be hard if you don’t want it to be.
The creative financing approach is about breaking down barriers for even the uninitiated. This lets you make informed choices in a field that people usually think is out of reach.
You don’t need deep pockets or years of experience to start.
The playing field is level, allowing anyone to step into the world of real estate investing, even when they don't have all the answers.
Creative financing allows you to manage risks that other investors heap on themselves. It's about conducting thorough due diligence, planning for contingencies, and maintaining a mindset geared toward learning and adaptation.
It lets you start off small by finding opportunities in more simple transactions – like subject to or seller financing – and lets you take small steps to expand your horizons.
This means diversifying your investments, exploring new markets, and continuously refining your approach for greater success.
Goal setting and creating investment income
Start with ONE goal until you accomplish it.
Millionaires have multiple streams of income, but they didn’t establish them all at the same time. They focused on one and scaled it with a team before making it self-sufficient.
So, to become a successful investor, start with one transaction.
Any transaction closed is a success. It adds to your portfolio and helps grow your bank account. It helps people that need help and provides for you and your family.
AND it lets you get the education and experience you need under your belt to pursue your next investment. You’re building it all up, step by step, and you’re doing it without all the answers available.
If you want to start with some answers, then you can start in the SubTo community where I can connect you with not only the education, documents, partnerships and leads you need, but also the encouragement and community support that is REQUIRED to make you a raging success.
(And, if you’ve read this far and aren’t ready to take the leap into the SubTo community, at least start with my free eBook “Seller Spells” to give you answers to questions a bunch of sellers are going to ask about creative financing…)