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Creative Financing in Real Estate

The team this time talks about creative ways of financing. The team talked about how important goals are in terms of saving enough money to be considered wealthy. Pete said that in order to get where you want to be, you have to state the time, date and what you’re going to do.

During the show, the team answered a question from a caller regarding how to structure a purchase agreement and how to get a real estate agent find out exactly what’s sold on a certain property. Gretchen, their finance expert stated that in any negotiation, information is power. The two things that a buyer must know are the length of time that the property had been on the market; and the outstanding mortgages of the property. This information will tell you how motivated the seller is that will put you to a stronger position and power.

The team also discussed refinancing a house when a caller asked “If you take out this mortgage and you take an ARM for 3 or 4 years when the time comes due, do you refinance this house?” During the course of discussion, Gretchen mentioned the unisque Pledge Asset Program. The program allows you to get the benefit of reducing that lender risk to lower their Loan-to-Value (LTV) instead of paying cash into the property you can pledge existing assets. You’re essentially using existing assets whether they are cash accounts, CDs, money markets, standard savings accounts, bonds, things that are secure or in some instances non-cash equivalent accounts – stocks, mutual funds, things that have a little bit are more a variable in nature. Essentially, you can pledge a certain amount of those assets in lieu of the down payment you would normally make on the property.