Creative Financing Secrets for Buying Real Estate – Episode 1018

Too many people think inside the box when it comes to buying real estate. If you’ve ever gotten a “no” from a lender, that is not your destiny. If buying real estate is something you truly want to do, then the old adage applies: where there’s a will, there’s a way.

There are truly so many ways to get started buying real estate. If you have tenacity, willingness, and the ability to be creative, then there’s nothing that can stop you. On this episode of Investing in Real Estate, I’m going to share creative financing secrets for buying real estate!

More About This Show

1. Taking a 401k loan. Did you know that you can borrow funds from your 401k plan? This is different than withdrawing, which comes with high taxes and penalties. Nearly every provider offers the option to take a loan from your plan, and it’s often as simple and fast as a few clicks of a button. A 401k loan can be a powerful way to buy rental properties because you’re paying the interest back into your 401k, and in turn growing your retirement fund. If you have a sizable 401k, and no intentions of leaving your current employer, consider using this strategy to grow your portfolio.
2. Utilizing forgotten retirement plans. Sometimes people change jobs and accidentally leave behind old 401ks or other retirement plans. A great way to use these funds for investing is by rolling those funds into a self-directed IRA. If you think there’s a chance you may have forgotten funds out there somewhere, you’ll have to some investigative work. Call your old employers, try logging in to your online portals, or dig up old statements. If you find that you do have some funds available, our team of self-directed IRA experts can help you set up your new account in just a few minutes, and then rollover your old funds so you can start utilizing them. It’s important to note that there are special rules about investing in a self-directed IRA, but our experts are trained on this. If you’re interested in buying real estate with retirement funds, you can schedule a free call at morrisinvest.com
3. Tapping into your home equity. If you own your home, or any property for that matter, consider utilizing your equity to grow your real estate portfolio. In this housing market, it’s highly likely that your home has appreciated in the past few years. Chances are, you have a sizeable chunk of equity that you can deploy. This is one of the greatest wealth building tools that people overlook. There are a few different ways to tap into your equity, but most investors we work with tend to use a home equity line of credit, or HELOC. I have a full, in-depth video called The Ultimate Guide on Leveraging Your Home Equity. In that video, you’ll learn the mechanisms of how this strategy works, and things to consider before you pull the trigger.
4. Trading up. Something we teach in our free 90-day Financial Empowerment Bootcamp is how to turn your non-performing assets into performing assets. This could be a car you don’t really use, a savings account collecting nominal interest, an underperforming rental property, collectables, and the like. Consider if you own anything that you could sell or trade. The specifics of what this looks like is going to vary based on your personal situation, but go back to the drawing board, aka your balance sheet, and assess if there’s anything you can sell or convert into a performing asset. If you need more guidance in this area, you can download the bootcamp for free at morrisinvest.com/bootcamp.
5. Partnerships. A real estate partnership is a great way to link up with other investors and pool your resources. A partnership can give you access to more resources and improve your chances of obtaining financing. And in the case of limited finances, a partnership allows you to grow your portfolio faster than you could on your own. Although a partnership can be a beautiful thing, it’s not something you should enter into lightly. Be sure to do your due diligence and make sure that everything is set up correctly so you don’t get burned. See my videos “How to Buy Rental Properties with Multiple Investors” and “The Pros and Cons of Investing with a Partner.”
6. Private money. If you’ve struck out with traditional financing, consider immersing yourself into the world of private money. The beautiful thing about private financing is that there are no standards or regulations. There’s a lot of freedom involved, and making a mutually beneficial deal helps everyone reach their goals. You could work with professional lenders, or even approach a friend or relative. For anyone who is interested in pursuing private money, I always recommend the book Getting the Money by Susan Lassiter-Lyons. The book will teach you the exact steps you need to take to approach lenders and close deals.
7. Referrals. At Morris Invest, we have a great referral program that allows you to save up credits toward a rental property by referring your friends and family to us. When your referral closes on a property with us, we’ll give you $1000. If you have enough connections, you could easily earn a few thousand dollars each month. You can read the fine print on our referral program at morrisinvest.com/refer

Episode Resources

Book a Call with Our Team
The Ultimate Guide on Leveraging Your Home Equity
How to Buy Rental Properties with Multiple Investors
The Pros and Cons of Investing with a Partner
Getting the Money by Susan Lassiter-Lyons
morrisinvest.com/refer
Connect Invest 
morrisinvest.com/bootcamp ← Download your FREE 90-Day Bootcamp!
Subscribe to Investing in Real Estate on Apple Podcasts
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel
Like Morris Invest on Facebook

DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

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