The best answer I’ve found to financial problems of the real estate investing is creative financing. You use your problems to create your solutions. And what do your solutions do for you? They:

· Give you assets - that is, ownership of real estate that rises in value as time passes.
· Give you a regular income from your rentals, an income that will increase as time passes.
· Give you the basis for building a strong credit rating as you pay off your loans.

Yes, creative financing can give you a new life - quickly and easily. And while you’re building your new life, you’re rendering a valuable service to people needing clean, comfortable, and safe housing. So let’s overcome any financial problems you may have by using creative financing!

NOTE: The first “problem” listed - having no credit history - is really not of your doing. Some people who start their real estate moneymaking career early haven’t had time to establish their credit history. But the “problem” CAN be overcome, as this investor writes:

Youth and Real Estate DO Mix

“About a year ago I began buying real estate even though I was just 21years old and had no credit. In one year I bought a lovely home, two co-operative apartments, a 5-family and a 6-family apartment house - all for zero cash down. They appraise at just under $800,000. It still amazes me - a year later - that I am able to own real estate, being so young and without a credit rating!”  - Hew York

You CAN get income real estate for yourself, even with every financial challenge listed before, plus dozens of others you might name! So let’s get you started on your way to real estate riches using creative financing.

Get Income Property with an Option

No credit history? A bankruptcy last month? Behind in support payments to a former spouse? Out of work, with no prospect of a new job? Yet you want to get into income real estate? No problem!

An option gives you the right to buy or sell a property for a given period of time. Your time allowance can be 30,60, 90,120 days, or more. When you take an option on a property, there usually is:

· No credit investigation.
· No income check.
· No employment review.
· No request for the last three years’ tax returns.

You just pay a small amount for the option - from $1 to $100 - for single-family homes. Then you take fast action to:

· Sell the property for a profit before the option expires.
· Get financing for the property based on the income it will deliver to you.
· Option the property to someone else for a much higher fee than you paid.

You can take ALL these steps without ever being asked a single question about your credit, your job, your business, or any other personal matter. Your whole key to success with no-questions-asked options is:

· You must have a plan for the optioned property BEFORE you take the option.
· You must know, in advance, approximately how much money you can earn from flipping the property after you take your option.
· You must act quickly so you get results long before your option runs out

So consider using an option to control real estate long enough to earn money from it You can use an option at any age - 18 or 80 - with any credit rating - A through D - with any financial history! Just follow the easy steps above. A typical real estate option is shown below:

Option to Purchase Real Estate

Date: _____________________

In consideration of the amount of $100,000 (one hundred dollars and no cents), John and Jane Doe (the optioners) hereby grant Mary and Edward Smith (the optionees) the exclusive right to purchase the property at 123 Main Street, Anytown, US 12345 for the next 90 (ninety) days from the date above, at a price of $100,000.00 (one hundred thousand dollars and no cents). During this time the optionees are free to sell the above-named property to anyone of their choice, provide they satisfy the terms of this option in full. This option covers the entire agreement between the above-named parties and no other understanding, written or oral, are in force. In the event of disagreements, this option will be subject to the laws of the State of ______

Agreed:
Optioners:__________________
Optionees:__________________

Don’t think that options limit you to small properties. lust read this letter from a RE Investor:

Options Can Give You Great Results

“We are very active in the Canadian real estate market and. just gained control of another piece of property via an option with no expiration date. The property is valued at $5,800,000. Again, we got it with no money down.”
          — Canada

Buy Properties Having Assumable Mortgages

An assumable mortgage is a loan on a property you take responsibility for when you buy the property and gain title to its income stream. There normally is no credit check when you assume a mortgage. Why? Because the sale is between you and the seller with no financial checking of you by a bank, a credit union, or a mortgage lender.

And most sellers will accept you as you are. They won’t “pull a credit report” on you if they feel you’re a “good guy or gal.” So you’re into an income property without a credit check of any kind. Steps to take are:

· Get the seller to take a Purchase Money (PM) mortgage for the down payment if you don’t have the cash needed for it.
· The Purchase Money Mortgage becomes your assumable mortgage because there are no credit checks associated with the takeover loan.
· Your seller - in effect - becomes your assumable-loan lender.

A Investor writes:

Purchase Money Mortgage for Zero-Cash Takeover

“In three days we are closing a deal on an 11-unit apartment building. We easily got a first mortgage. For the balance we got a Purchase Money Mortgage (from the seller.) So we did not have to put any money into the deal to get the property.” – Michigan

Properties financed by the Veterans Administration (VAJ can have assumable first mortgages. So check foreclosures offered by the VA because you can often get into a single- family home with no credit check and no qualifying requirements. You’ll find VA foreclosures at www.va.gov.

When you combine an assumable first mortgage with a PM mortgage you have a true zero-down deal. In addition, there usually are NO credit checks of any kind with either type of assumable mortgage!

For example, an Investor writes:

Sellers Respect Your Experience

“Enclosed is information on the two apartment buildings I mentioned to you on the telephone the other night. The sellers said they would finance the entire sale for someone who has experience in running rental property. Fortunately, I have eight units; The owners aren’t concerned with the terms. They’ll work all of that out with a competent buyer.
– Oklahoma