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|
|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|
|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|
|Needs All Cash for Equity|
|Outstanding Financial Obligations|
|Large Capital Outlay Coming Up|
|Must Sell Immediately|
Bank Loan to FHA Loan