20 Creative Ways to Buy

Times are tougher. There is always a time when things are tough. Even if the market is currently booming this is good advice. This article is good to read anytime in any economy.

Buying a house can be REAL difficult. Especially for first time buyers or anyone immigrating to a country. So I though 20 creative ways to finance a Real Estate deal would be of use to someone. Now make sure you know what you’re doing in some of these cases. I have spent years buying and selling Real Estate. Do not take any financing or buying of a home lightly. It is serious and you can get in trouble, financially or with the law (ie. mortgage fraud). So shopper beware and if your not sure of a creative way to finance anything ask a professional Real Estate agent or mortgage associate. Anyways, here we go…

1. Cash (of course)
2. Cash to a high ratio mortgage
3. Cash to assume an existing mortgage (careful of terms and conditions on this one, usually still have to qualify)
4. Cash to assume a first mortgage and the acquire a new second mortgage
5. Interm financing
6. Trade something (boat, car, cottage)
7. Promissory note to seller from someone you know who has money
8. Rent to own ( I do not recommend as this usually only benefits the landlord, you can save money yourself and that is all this does)
9. A relative co-signer
10. Gift from a relative

11. Employers sometimes help with down payment
12. 0% down, they are still around but might be from a “B” class lender
13. Stated income qualifier - Business owners
14. Joint ventures (this is a great way to buy multiple homes, just make sure a lawyer drafts the agreement)
15. HELOC (Home Equity Loan) If you made money on your home by having it a long time or after a boom. Pull out the cash at a very low rate and use it as a down payment for a home or 3
16. Private lenders through a mortgage broker
17. vendor buyback ( this means the seller will loan you the money for a down payment at a reasonable rate, usually 2% above prime)
18. Buy with relative or good friend. Get together and live up and live down. Find a home with a kitchen suite downstairs and you can share the mortgage
19. Live up rent down, make sure the suite is legal
20. Use RRSP’s to buy your first home, usually on first homes only

So that is it. Hope this gets you thinking and buying. I strongly believe, like many others that Real Estate makes you wealthy. If you can find a way to buy and keep it for 5-10 years. You will make a nice tidy profit. Or even better just get that HELOC and keep buying homes until you have enough passive income to retire. Either way, I always tell people the best time to buy Real Estate was yesterday, the next best time is today. Yes things might be scary now, but if you hold long enough you will be very happy with the returns.

Drop by http://www.showmeproperty.net and search for homes, check mortgage qualification and so on!

Daniel Kepka
Discover Real Estate Ltd.
Calgary, Alberta