| We've all heard the phrase "creative financing," | | | | terms that are agreeable. |
| but what exactly is it? How can it help a | | | | 10. Closing: the meeting between buyer and seller, |
| homeowner who is facing divorce, job loss, the | | | | usually held at a local title office, in which |
| death of a spouse, permanent decrease in | | | | documents are signed and ownership is |
| income, or even foreclosure? | | | | transferred from seller to buyer. |
| Let's take a closer look at a creative deal, and the | | | | Now that we have defined the most common |
| way that this type of agreement can sell a home | | | | terms associated with putting together a creative |
| quickly and efficiently. We'll define our terms that | | | | deal, let's talk about how working with a |
| relate to the creative transaction. Finally, we'll | | | | professional property investor or property |
| discuss the benefits of working with a professional | | | | investment company, can sell your home quickly. |
| property investor, and how you can gain freedom | | | | When you have a house, duplex, condo, land, or |
| and peace of mind. | | | | commercial property that you must sell |
| In order to learn more about a creative sale, let's | | | | immediately, you may first think of listing with a |
| define the terms related to the subject. | | | | Real Estate Agent. Depending on the strength of |
| 1. Property Investor: a person who buys and | | | | your local housing market, the condition of your |
| controls properties, with the express intention of | | | | property, and the asking price, you can expect |
| selling, optioning, or renting to gain a profit. | | | | the property to remain on the market anywhere, |
| 2. Cash Sale: when a seller offers cash to | | | | on average, from 60 days to one year. You |
| purchase a property. A cash buyer usually | | | | might get lucky and find a buyer in a shorter |
| expects to receive a significant discount off the | | | | amount of time, but there are certainly no |
| appraised value of the house. | | | | guarantees. |
| 3. Purchase Subject to Current Financing: when a | | | | If the Real Estate Agent does sell your property, |
| homeowner can no longer afford to remain in a | | | | you are obligated to pay a real estate |
| house, and is nearing a potential foreclosure, a | | | | commission. This could result in thousands of |
| buyer or investor may use a creative solution in | | | | dollars of additional expense, at a time when |
| which the property is deeded to the new owner, | | | | every dollar counts. |
| and he/she takes over the previous owner's | | | | When you work with a property investor, you |
| payments. | | | | can nearly always expect to receive a guaranteed |
| 4. Lease Purchase: usually used when a seller has | | | | offer within 24 hours after an initial telephone |
| been transferred, and is already making payments | | | | meeting. In many cases, the investor is able to |
| on a second house. In this creative scenario, the | | | | offer you close to your asking price, when you, |
| property investor leases the seller's house for a | | | | the seller, are willing to offer terms. If you and |
| period of 4 - 6 years, with the option to buy the | | | | the investor can come to an agreement, you can |
| property at any given time during the lease | | | | generally expect a very speedy closing, within |
| period, for at or near the seller's asking price. | | | | seven to ten business days. |
| 5. Quit Claim Deed: the legal document that must | | | | The benefits to selling your property to a |
| be filed with the appropriate government office, | | | | property investor, versus loosing your home and |
| that transfers ownership of a property from one | | | | sustaining long term credit damage, far outweigh |
| party to another. | | | | the negatives. First of all, you receive a |
| 6. Notary Public: a signing agent that is authorized | | | | guaranteed offer in 24 hours or less, and if you |
| by the state, to verify the signature of any party | | | | accept the offer, can expect to close in seven to |
| signing a real estate document. | | | | ten business days; as previously mentioned. |
| 7. Purchase Agreement: the contract that spells | | | | Secondly, you're never going to have to pay any |
| out the details of a real estate sale, and must be | | | | real estate commissions, or deal with closing |
| signed by a seller and buyer, to be enforceable. | | | | costs. Most importantly, you'll be able to get out |
| 8. Guaranteed Offer: an offer to purchase | | | | from under the financial burden of owning your |
| property that becomes a purchase agreement, | | | | property quickly, so that you can move on with |
| when the seller accepts and agrees to the terms. | | | | your life - without further headaches or hassles. If |
| 9. Negotiation: the act of discussing the wants and | | | | you find yourself worried about how you're going |
| needs of both the buyer and seller, as it relates | | | | to come up with your next mortgage payment, |
| to a real estate transaction. This open | | | | maybe it's time to start getting creative! |
| communication allows for both parties to come to | | | | |