Creative Financing is the melding of interests between the buyer, the seller and the lender. Today, creativity for me makes 4 out of 10 deals happen. Without the creativity to alter Mortgage Interest Rates, Change the cash required, Raise the selling price, and any other number of things I would have 40% less business or sellers would sell homes more slowly or buyers would pay more in costs and mortgage rates.
Success comes in creative financing when you know what buyers, sellers and lenders want or can live with.
Success comes when you and your lender know all the options for structuring a deal, what will the clients live with, what will they find acceptable. It greatly depends on the motivation of the buyer and seller and the flexibility and capability of the lender.
Creative Financing goes outside the box to find the way to make the deal happen taking all factors into consideration. At the rate we are experiencing this kind of financing, in the next few months it will be 50% of our business.
What I know is that deals that could not get done are getting done and BOTH PARTIES ARE HAPPY.
What I know is the agents make more money, I make more money and the clients are HAPPY.
This is a win win win situation.
Wednesday I will blog in more detail some of the options we use to make deals come together.
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