San Clemente Real Estate - Dana Point Real Estate - Long Beach Real Estate - Desert Area Real Estate

Creative Financing For You...

Carl Mitrak bought his third property with a second and third deed of trust and note in 1976, and he was only twenty-four! In 1978 he closed an escrow which was a tax deferred exchange that was a "three way, five property exchange using 2nds, 3rds, and 4th loans to balance the equity.

Creative financing is a catch all term or phrase, it is not really defined and has no specific meaning. Creative financing means different things to different people. While carrying a first or second loan, or other methods of financing may not appear as creative to some, it may appear creative to the consumer, and to many real estate licensees.

Historically it was used on large commercial buildings when loans were not available, needed too large of a down payment, or the new loan had too high of interest, as in the early 1980's. The concept and procedures trickled down to smaller apartment buildings and then to housing. Creative financing is emotional, and there are emotionally charged issues.

There are many other components to creative financing, however the main issue a buyer or seller wants to be concerned about is their level of risk, as creative financing can be risky for a buyer and seller - the levels of risk vary with the type of creative financing.

When you need help buying or selling creatively, please do not hesitate to call! PLEASE NOTE: Not all real estate agents are REALTORS. REALTORS subscribe to a code of ethics, and belong to a local, state and national organizations. For the best results and service, interview me. I am a twenty-two year REALTOR MEMBER! For my organizations web site, visit www.realtor.com