Bank Loan Technique

A bank loan is a creative financing technique used with existing equity. A bank and other types of lenders will make loans based on your signature or perhaps the equity you have in a car, boat, or other property. 

Demonstrate your ability to repay these loans by working with a few local banks. Start by borrowing small amounts and repaying the loans earlier than agreed, this will turns you into a solid business partner for present and future transactions. With this technique, building up a line of credit with two or three banks in not difficult. 

You will also find that the seller can be a good source to lend you the down payment. when the required down payment is only a few thousand dollars, or when you are a few thousand dollars short, a flexible seller may agree to a delayed down payment 6 to 12 months after closing. Offering the seller a high interest rate can help you do this. many sellers would find a 12% to 15% interest rate very attractive and might even spread the down payment over a longer period of time (for example,24 to 36 months). On a relatively small amount of money, the higher interest rate does not actually cost you that much more, especially because it is a tax deduction.

Specific Situations to Apply Technique #9
The Property
Property Offered Below Market
Low Mortgage, High Seller Equity
Owned Free and Clear No Mortgages
Low Interest Assumable Mortgages
Existing 1st or 2nd Mortgage Private
Unused Room (s) that Could be Rented
The Buyer
Cash for only Part of Down Payment
No Cash at All
Good Credit on Banks or Credit Union
Lump Sum Cash Due Soon
Large Monthly Income
You Know People with Cash to Invest
Equity in Real or Personal Property
Dead Equity
The Seller
Needs All Cash for Equity
Outstanding Financial Obligations
Large Capital Outlay Coming Up
Must Sell Immediately

Bank Loan to FHA Loan