True Asset Realty | Real Estate Investing

These are the main things you need to be aware of before using creative financing to invest in real estate:

Creative financing works best if you can find great deals, since the potential for profit is greater.
Remember that paying full price on a property will result in higher mortgage payments, even if you do not have to make a down payment.
Be conservative when using creative financing.
A number of things could happen to reduce your profit margin. You might have to pay several thousands of dollars to have tenants evicted. You might encounter costly repairs, or see taxes and interest rates go up.
Be ready to make sacrifices.
It’s possible to buy real estate with little or no money down, but this doesn’t mean you can get into real estate without working hard.

Put some money aside.
You can get started with little or no money down, but you’ll still have expenses to cover in the long-term. You might have to pay for repairs or make up for a loss of income if a tenant isn’t paying their rent.
Learn as much as you can about real estate.
There are plenty of resources available to you, including books, classes, seminars and online material. Take some time to learn about the market, how to recognize good deals, how to negotiate, and gain a better understanding of different creative financing strategies.
Should you invest in a property that’s ready to move into, or look for one in need of repairs?
A move-in-ready property is usually more expensive but you’ll be able to start renting it right away. A property in need of repairs should be more affordable, but you’ll have to invest time and money in repairs before you can even start renting it out.