Creative financing is just a fancy way of saying “get what you want now, but pay later.”
It doesn’t work like a credit card either.
The idea behind a credit card is the same. If there’s something you want, but don’t have the money for – or don’t want to spend the money on – is available right now, you can still get it. Now, banks charge you a pretty premium for that cool ability.
Depending on your credit score, you may have to pay back anything up to 25%! Ouch. Imagine if you’re not buying something small either – what if you’re trying to buy a computer or pay a bill over a thousand dollars. That’s not going to be fun!
Mortgages work the same way.
When you get a mortgage from the bank, you are borrowing money through an account instead of a card. You’re saying that you don’t have the money you need to buy the house you want to be in right now.
The bank will let you borrow that money, but they’re going to charge you interest. The average mortgage rate in the U.S. has had a few recent raises, so people are getting nervous about buying homes.
I would get nervous too if I had to pay any amount over 5% back on over a thousand dollars – let alone $100 thousand or more. (And good luck finding any decent homes around $100 thousand right now!)
All this is assuming that you can even qualify for a mortgage with the right amount of income, in the right area, find the right house, qualify for the right interest rate and have the expected 10-20% down payment locked and loaded.
It’s just a fact that unless you have a couple full-time jobs and successful side hustles, you may never be lucky enough to get into a house. And you’ll never be lucky enough to build security and wealth through real estate investing.
[h2] So, how’s the average person supposed to get a house?
The answer is creative financing – aka get it now but pay later.
The difference between creative financing and a mortgage is a fewfold. You don’t need:
Credentials from a job or employers
Credit from other loans
Crazy amounts of cash for down payments
Most of the properties – notice that word is plural – that I buy I get with 0% down and 0% interest over however many years.
I can do this because I don’t go to banks for loans – I go to sellers.
I ask the sellers of the properties I buy to accept 0% down and 0% interest because I’ll pay them the amount of money they want for their homes. Most people try to haggle prices. I don’t. I give buyers what they want, and get what I want in return as long as they act as my bank.
I follow all the legal steps I need to to make everything legit and get payments flowing so sellers can have that sweet cash. The only money I need is to pay the people who process the paperwork.
Nobody else seems to be doing this because they can’t figure out how to. That’s what I’m teaching the SubTo community to do.
I’m not looking to have a run of the market, I want to work with anybody who will work with me and help other people.