Perhaps you’re just getting started in the world of real estate or perhaps you’ve been in for awhile but your portfolio is at a standstill. Either way, you are in need of some money for your next investment.

In a typical real estate transaction, the potential homebuyer finds the property, applies for a mortgage, and close on the home- if and when they are approved. However, it doesn’t always go this smoothly- more often than not, an investor needs to exercise some creativity to fund the deal.

This opens up to questions like: what creative financing options are out there when it comes to real estate investing? In this article, we’ll take a look at 10 techniques to help you fund your next deal.

10 Creative Financing Techniques

Cash out refinance: tap into the equity of your home
HELOC (home equity line of credit): loan of up to 80% of your home’s value, minus what you owe on your mortgage
Personal Loans: better than refinancing or getting a HELOC because you don’t have any collateral- in most cases.
Seller financing: seller of property agrees to hold the note of purchase and you make payments until the note is paid off.
Lease options: leasing property allows you to work with the landlord to purchase the property at the end of the lease.
Self-directed IRA: allows investor more control of funds and helps amp up retirement savings. The returns must go straight to the IRA.
Hard Money: approval requirements not as difficult as traditional loans, but stipulations vary.
Private Money: similar to hard money, but the lendee has a more personal relationship with the lender.
FHA Loans: great for first time home buyers that don’t meet the requirements for a traditional loan.
Crowdfunding: reach out to the public for some assistance on housing centered platforms such as Feather the Nest and Hatch my House.

As you can see, there are many creative financing techniques for real estate. If you are ready to get started with one of these, contact Lighthouse Capital for help.