Epic Real Estate Investing - Top 3 Creative Financing Strategies You NEED to Know in Trump’s Housing Market | 1397

Episode Date: December 14, 2024

Today, we dive deep into the growing crisis of housing affordability, where skyrocketing home prices and stagnant wages are making homeownership feel like an unattainable dream for many. With the political climate in flux and uncertainty gripping the real estate market, traditional financing options are becoming less and less viable for most buyers. But don’t lose hope—there’s another way. In this episode, we explore three powerful and creative financing strategies that could change the game for potential homeowners: Seller Financing, Subject 2, and Lease Options. These lesser-known methods allow you to bypass the traditional banking system, overcome the obstacles posed by high interest rates and rising property costs, and step into homeownership on your own terms. Whether you're a first-time homebuyer struggling to compete in today’s market or an investor looking for an edge, these strategies offer a unique way to navigate the current real estate landscape. But the time to act is now. The market is shifting, and those who understand these alternative options will be the ones who turn today’s challenges into tomorrow’s opportunities. Tune in to learn how these innovative financing methods can help you secure the home of your dreams without getting bogged down by the rising costs and complexity of traditional home loans. The housing market is tough, but with the right strategies, you can still make it work for you. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-i-a's.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Did you know the average home price has risen 50%? faster than wages in the last decade. At this rate, owning a home will soon be out of reach for millions. And while a new administration is about to take control and a slew of executive orders are about to be signed on day one, there'll be a flurry of activity for sure. The new team will be in action, and that will create a new feature for the country. Fortunately, everyone from both sides of the aisle agrees housing affordability is a crisis that can't wait. We're all hopeful. And now, There are proposals on the table, solutions that sound promising, but currently they're just proposals.

And that's the problem. Americans are stuck waiting for Washington to take action while prices keep climbing and opportunities slip through your fingers. So what are you supposed to do? Sit on the sidelines waiting for politicians to figure it out or take control of your future, like right here and right now. You'll know the three top of creative financing strategies that can break this market wide open for you. whether politicians make moves or not. The first one being seller financing or owner financing. I mean, imagine buying a property without begging for a loan.

It sounds impossible for most people, but that's the beauty of seller financing. Few know about it. And for those that do, most really don't even understand it. It works like this. Instead of dealing with the bank, you make payments directly to the seller over time. Think of it like buying a car from your neighbor, and you set up a payment plan between the two of you. There's no bank.

no middleman, just a mutually beneficial agreement. With housing affordability at an all-time low, more sellers are open to creative solutions to move their properties. They understand that traditional buyers are scarce. So offering financing, that can make their property more attractive. Not to mention, they can sell it for more money. That's the benefit for the seller. But the benefit for you as the buyer, one, it's easier to qualify.

You get to skip the strict banking requirements. Two, the terms are more flexible. you get to negotiate the down payment if there is one, the interest rate, if there's any, and the payback period. I mean, anything goes here. Nothing is off limits. As long as you and the seller agree, it's good. But in a market where everyone seems to be struggling, why would a seller agree to this?

Because they're facing the same harsh reality. Properties are sitting longer on the market, and seller financing can be a win-win solution. Can you see how this strategy turns a challenging market into an opportunity? If you'd like a copy of my seller financing contract, I uploaded a copy for you at epic promissory note.com. Now, the second strategy is called Subject 2. This is where you take over an existing mortgage. It's like finding a great deal and the money. It just comes along with it.

It's like stepping into someone else's shoes who already got approved for a loan and you taken over their mortgage payments. With the subject to deal, that's exactly what you do. You take over the seller's existing mortgage without officially assuming a loan. meaning the loan, it stays in their name, but the property, it goes in yours. It's very much like subletting an apartment, but instead of renting, you own it. You get the keys, you get the deed, and you get control while the original mortgage, it remains intact. Given that interest rates are high and likely to stay that way for a while,

taken over an existing mortgage with a lower rate that's gold. Sellers who need to move quickly due to financial strain or life changes may be more open into this arrangement. And that's why they would agree to it. You see, there's a huge benefit to this type of deal for the right seller. And the benefit for you is a lower interest rate in most cases. You get to benefit from the seller's lower mortgage rate. You get reduced closing costs. There's not going to be any expensive loan origination fees. And then you benefit from a quick transaction. You get to bypass all the lengthy, complicated loan approval processes that banks put in place. In the climate where obtaining affordable financing is tough. This strategy can be

the ticket to your next property. You do want to be mindful of the due-on-sale clause that's present in most mortgages, which allows the lender to demand full repayment if the property is sold. However, many lenders may not enforce this if the payments remain current. In fact, in 18 years with over 50 of these under my belt, I've never had one called due. So could subject to be the creative workaround that you've been searching for? Because housing costs, they're squeezing everyone regardless of politics or income level. The housing affordability crisis, isn't just a headline. It's a reality affecting millions, from urban centers to rural communities. People across the political spectrum are feeling the pinch. To make matters worse, forecasts indicate

that mortgage rates are likely to remain high with no significant relief on the horizon. And that's terrible news for many. But as Albert Einstein famously said, in the midst of every crisis, lies great opportunity. This couldn't be more true for the current housing market. And for someone like you now, who has two new financing strategies in their tool. And here's a third. Consider proposing lease options to sellers, like rent to own. This strategy, it lets you lease a property now with the option to buy it at a predetermined price in the future. It's like reserving a hotel for next year's vacation at today's rates. You see, you secure the price now, regardless of how much demand may cause the prices to increase. And if they fall,

hey, you just cancel. No penalty. You're not obligated to buy. But with housing prices expected to continue rising and interest rates staying high, locking in a purchase price today can save you a ton of money down the road. Plus, this strategy, it gives you time to improve your financial situation if you need it. So the benefits of a lease option for you are, one, a low initial investment. You know, often it's just an option fee, a small fee, and a regular monthly payment. Number two, time flexibility. You can use the lease period to save money or boost your credits for it. And three, equity building. Some agreements allow a portion of your rent to go toward the purchase price. In a market where buying seems out of reach,

lease options provide a viable path to homeownership or signless called a master lease, where you have the option to sub-lease the property to someone else, where you can make a little bit of cash flow for yourself while you wait for the market conditions to, you know, line up for your specific situation and goals. Does the idea of living in your future home now while you prepare to buy it sound appealing? Let's face it, the traditional real estate market is. isn't friendly right now. High costs and interest rates are locking out potential home buyers. But give it up, that's not the solution. Instead, these creative financing strategies offer alternative routes to owning and investing in property. Waiting for the market to become more

favorable, that could mean missing out entirely. With no significant relief in sight, the time to act is now. And now that you're equipped with these three powerful strategies, it's time to take action. We search for consult professionals and start looking at looking for opportunities where you can apply these methods. If you'd like someone on one-on-one help with picking up your next investment property, go to R-Ei-Aase.com, answer a few questions, and then pick a time for us to hop on the phone. By thinking creatively and decisively, you can turn today's challenges into opportunities. Don't wait for the market to change. Change your approach.

I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here, and I'll take great care of them. God loves you, and so do I. Health, peace, blessings, and success to you.

I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com. Thank you.