Are you wondering how creative financing can fit into your current strategy and real estate business? As interest rates reach all-time highs and traditional financing becomes increasingly stringent, exploring alternative approaches to fund your real estate ventures can be a game-changer. Creative financing methods, such as seller financing, lease options, or crowdfunding, offer innovative solutions that can help you navigate the challenges posed by the fluctuating financial landscape. By embracing these unconventional avenues, you can adapt to the ever-changing market conditions, opening up new opportunities to expand and thrive in the world of real estate investment.
In this episode, Zachary Beach shares “creative finance” as the solution to the market’s volatility and financial challenges. According to him, while creative finance can be a valuable strategy, the key lies in executing it correctly, with the right paperwork from the beginning. When dealing with real estate subject-to transactions, Zacahry shares that they purchase properties within a family trust due to common concerns about tax implications and sales codes. This approach not only safeguards your investments but also ensures that you operate within the bounds of legal and financial regulations. Furthermore, buying real estate subject to existing loans can be a win-win situation, offering debt relief to families in need while maintaining consistent payments that keep the bank happy, transforming you into a favorable borrower.
Zachary also underscores that while creative finance presents a lucrative opportunity, diligent research and caution are essential to steer clear of potential pitfalls. Regularly running title searches is a crucial aspect of this diligence. Zachary has encountered numerous challenges arising from unclear titles after investing substantial funds in property acquisition, often resulting in difficulties obtaining the necessary title or insurance. By exercising due diligence and maintaining transparency throughout the creative financing process, you can secure a win-win situation for both buyers and sellers while mitigating potential risks.
That is what Zachary shares with Fuquan today. Zachary emphasizes the importance of first getting the skill set to build your confidence and ability when stepping into creative finance. Creative finance is not short wholesale deals or signing a contract. It’s like selling your bank for the next 3, 10 or 30 years. So, having the right paperwork and terms done at the beginning is important to prepare for a great exit strategy.
Zachary is the CEO and Partner of Smart Real Estate Coach, a 3x Inc 5000 Fastest Growing Company focusing on transforming W2 employees into creative financing real estate investors. With a passion for business building, he is also a Partner in Original Real Estate, Wicked Smart Finance, and NatProcessing.com. Zachary is a 3x Amazon Best-Selling Author of Real Estate on Your Terms, New Rules of Real Estate Investing, and Sell with Authority for Real Estate Investors.
Tune in to get insight into Zachary’s top tips on how to optimize your real estate strategy and enhance your business using the power of creative finance.
Highlights from the interview
- How Zachary got into creative finance real estate investing space
- How to execute the creative finance strategy in the right way and paperwork
- Zachary first deal’s challenges as a bartender and personal trainer prospecting in a family business
- Why Zachary is so passionate about real estate and what keeps him going
- Challenges that Zachary is facing with the market in creative finances space
- Zachary’s coaching program and the benefits it provides in creative finance
About Zachary Beach
Zachary is the CEO/ Partner of Smart Real Estate Coach, a 3x Inc 5000 Fastest Growing Company focusing on transforming W2 employees into creative financing real estate investors. With a passion for business building, he is also a Partner in Original Real Estate, Wicked Smart Finance, and NatProcessing.com. Zachary is a 3x Amazon Best-Selling Author of Real Estate on Your Terms, New Rules of Real Estate Investing, and Sell with Authority for Real Estate Investors.