Five years\u00a0after\u00a0we entered this\u00a0current downturn, some real estate professionals still attempt to close transactions\u00a0through the\u00a0sole use of traditional forms of financing. By traditional, I\u00a0am referring to \u201c30-year fixed\u201d, \u201cARMs\u201d and \u201cBalloon\u201d mortgages, yet these financial tools can hardly be seen as\u00a0applicable to some of the marketing methods which\u00a0are becoming more and more prevalent\u00a0and that promise to remain with us in coming years.<\/p>\n
Real estate auctions provide\u00a0a good example of this. Many auctions protect Realtor involvement, and are therefore an additional revenue opportunity for Realtors. However, a large number of properties\u00a0being auctioned\u00a0require special financing that allows for properties being purchased to be rehabbed in some fashion. Auction companies have only one interest: to get the property sold.\u00a0 So often the clauses \u201cfinancing not available\u201d and \u201cproof of funds required\u201d will be noted\u00a0on specific properties. This means that the buyer needs to demonstrate that cash is readily available for purchase and that no allowance is being made for conventional mortgage processing. For this reason, many people who purchase property at auction have\u00a0investor <\/em>financing that\u00a0allows not only for the purchase of the property, but also provides funding for needed home improvements. Often times, there is even a moratorium on payments\u00a0permitted for several months, to allow for completion of repairs before payments begin.<\/p>\n So many examples of special financing exist\u00a0that\u00a0it\u00a0almost staggers the mind. Below\u00a0is just a quick and very limited sampling\u00a0of the many choices that homeowners and investors have\u00a0in selecting financing type for their properties. Each has its own unique purpose and audience, but rest assured there are tools available for all type of buyers and sellers and all types of situations.<\/p>\n For Homeowners<\/span><\/strong><\/p>\n For Investors<\/span><\/strong><\/p>\n The possibilities and interplay between the types of\u00a0financing available are too numerous to discuss in the context of a blog.\u00a0 Some investors that I have spoken with and read about have identified as many as 200 different ways to finance a real estate transaction,\u00a0yet many real estate salespeople can name only three!<\/p>\n It is time to act! Some steps that can be taken include:<\/strong><\/p>\n Five years\u00a0after\u00a0we entered this\u00a0current downturn, some real estate professionals still attempt to close transactions\u00a0through the\u00a0sole use of traditional forms of financing. By traditional, I\u00a0am referring to \u201c30-year fixed\u201d, \u201cARMs\u201d and \u201cBalloon\u201d mortgages, yet these financial tools can hardly be seen as\u00a0applicable to some of the marketing methods which\u00a0are becoming more and more prevalent\u00a0and that promise […]<\/p>\n","protected":false},"author":181,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31,161],"tags":[1351,2431,5761,6511,12391,14271,14691,17241,19511,19561,20641,21661,25781,27631,33201,33981,35531,36111,38661,42321],"class_list":["post-6314","post","type-post","status-publish","format-standard","hentry","category-brokerage-operations","category-next-generation","tag-agents","tag-arm","tag-brokers","tag-buyers","tag-earnings","tag-fannie-mae","tag-financing","tag-government","tag-homeowners","tag-homes","tag-imagination","tag-investor","tag-marketing-branding","tag-mortgage","tag-property","tag-real-estate","tag-realtor","tag-refurbishing","tag-sellers","tag-taxes"],"yoast_head":"\n\n
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