Comments on: When the Bank Won’t Be the Bank, the Real Estate Investor Can Be the Bank http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/ Training and Tips for Real Estate Investors Tue, 15 May 2012 21:37:47 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Augie http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-6808 Augie Tue, 07 Jun 2011 17:59:59 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-6808 You asked three very interesting questions and it is important for you to understand that there are many ways to be successful in the real estate arena. When I consider the differences in the ease of selling residential vs commercial real estate I lways recall one of my earliest mentors telling me that everyone needs a place to live while not every one needs a storefront, shopping center or factory. There are more buyers of residential real estate than any other. Creative financing techniques lend themselves to both commercial and residential real estate. As a matter of fact it may actually be easier to negotiate creative financing on a commercial deal than residential property. Many of the commercial loans out there are easily assumed and seller financing and other terms are more broadly understood in the commercial market, though as with anything there are exceptions. I prefer to deal residential real estate (especially, single family houses) because of the flexibility and control I have over the property, income stream and exit strategy. From my perspective commercial has a very different risk profile and values can be severely influenced by factors beyond the owner's control. Happy Investing, Augie You asked three very interesting questions and it is important for you to understand that there are many ways to be successful in the real estate arena. When I consider the differences in the ease of selling residential vs commercial real estate I lways recall one of my earliest mentors telling me that everyone needs a place to live while not every one needs a storefront, shopping center or factory. There are more buyers of residential real estate than any other.

Creative financing techniques lend themselves to both commercial and residential real estate. As a matter of fact it may actually be easier to negotiate creative financing on a commercial deal than residential property. Many of the commercial loans out there are easily assumed and seller financing and other terms are more broadly understood in the commercial market, though as with anything there are exceptions.

I prefer to deal residential real estate (especially, single family houses) because of the flexibility and control I have over the property, income stream and exit strategy. From my perspective commercial has a very different risk profile and values can be severely influenced by factors beyond the owner’s control.

Happy Investing,

Augie

]]> By: Rebounding Master http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-6807 Rebounding Master Tue, 07 Jun 2011 17:04:25 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-6807 Is commercial real-estate as easy to sell as residential? Does it matter which one you are dealing with to be able to set up this kind of deal? I think it must be much easier to deal with residential because commercial would probably be too expensive for most people. Is commercial real-estate as easy to sell as residential? Does it matter which one you are dealing with to be able to set up this kind of deal? I think it must be much easier to deal with residential because commercial would probably be too expensive for most people.

]]> By: Augie http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-1664 Augie Sun, 27 Dec 2009 19:10:28 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-1664 I appreciate your comments. My advice to most people it to eliminate the box completely and just let things flow without restrictions. It takes time and practice. In the beginning we break out of the small box and find ourselves in one slightly larger, we break out of that one and find yet another slightly larger. Over time we will get past conventional thinking and develop cognitive fluidity as we assess opportunities from a totally new perspective. I appreciate your comments. My advice to most people it to eliminate the box completely and just let things flow without restrictions. It takes time and practice. In the beginning we break out of the small box and find ourselves in one slightly larger, we break out of that one and find yet another slightly larger. Over time we will get past conventional thinking and develop cognitive fluidity as we assess opportunities from a totally new perspective.

]]> By: Augie http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-1663 Augie Sun, 27 Dec 2009 19:05:43 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-1663 The available options are only limited by one's creativity. Joint ventures are a very good way to do real estate as lng as everyone involved understands their rights and responsibilities. They should be written down and if needed,have documents drawn up by an attorney. Banking experience can be helpful but real estate experience,property management, or rehabbing experience can be much more valuable. The key is to establish common goals and objectives and then define who will do what. I like ventures where one party brings expertise and one brings funding. The party bringing the funding should be passive and I'll manage the asset. This utilizes our respective expertise and allows for a simple and effective division of labor. Good luck and happy investing! The available options are only limited by one’s creativity. Joint ventures are a very good way to do real estate as lng as everyone involved understands their rights and responsibilities. They should be written down and if needed,have documents drawn up by an attorney. Banking experience can be helpful but real estate experience,property management, or rehabbing experience can be much more valuable. The key is to establish common goals and objectives and then define who will do what.

I like ventures where one party brings expertise and one brings funding. The party bringing the funding should be passive and I’ll manage the asset. This utilizes our respective expertise and allows for a simple and effective division of labor.

Good luck and happy investing!

]]> By: Augie http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-1486 Augie Sun, 26 Jul 2009 17:54:22 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-1486 Sadly the media and institutions have trampled individual creativity and would have the public at large believe they are the only game in town. They are not. I'm buying and selling houses and won't go anywhere near a bank because there is no negotiation nor quid pro quo, everything is stacked i their favor. When I structure deals with individuals, it is people helping one another achieve their goals and objectives. I appreciate your comment. Thanks! Sadly the media and institutions have trampled individual creativity and would have the public at large believe they are the only game in town. They are not. I’m buying and selling houses and won’t go anywhere near a bank because there is no negotiation nor quid pro quo, everything is stacked i their favor. When I structure deals with individuals, it is people helping one another achieve their goals and objectives. I appreciate your comment. Thanks!

]]> By: Augie http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-1485 Augie Sun, 26 Jul 2009 17:50:40 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-1485 I frequently work with private with private parties to help fund our transactions. In some cases they provide loans. In others they are equity paertners. The appropriate structure is usually the one that serves the interests of the party with the funding. You need to determine whether they are looking for income, growth, or tax benefits. Then you can structure the right arrangement. I frequently work with private with private parties to help fund our transactions. In some cases they provide loans. In others they are equity paertners. The appropriate structure is usually the one that serves the interests of the party with the funding. You need to determine whether they are looking for income, growth, or tax benefits. Then you can structure the right arrangement.

]]> By: Advice for women http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-1477 Advice for women Mon, 20 Jul 2009 07:58:07 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-1477 “You become the bank.” Would you suggest a partnership for this kind method of real estate? I was thinking of going into this with someone with banking experience. “You become the bank.”

Would you suggest a partnership for this kind method of real estate? I was thinking of going into this with someone with banking experience.

]]> By: website copywriter http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-1476 website copywriter Mon, 20 Jul 2009 02:26:30 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-1476 “Just remember to think outside the box. When traditional methods of financing dry up, be creative, and keep the engine moving.” Thanks for this unique but practical way of surviving in the financial crisis. Hopefully people in other industries apply this same kind of thinking to bring forth more opportunities. “Just remember to think outside the box. When traditional methods of financing dry up, be creative, and keep the engine moving.”

Thanks for this unique but practical way of surviving in the financial crisis. Hopefully people in other industries apply this same kind of thinking to bring forth more opportunities.

]]> By: Jake http://creativerealestateinvestingguide.com/2008/11/13/when-the-bank-wont-be-the-bank-the-real-estate-investor-can-be-the-bank/comment-page-1/#comment-1473 Jake Fri, 17 Jul 2009 09:56:11 +0000 http://creativerealestateinvestingguide.com/?p=139#comment-1473 As I was reading this, I was thinking I like how this guy thinks outside the box...then I saw that last paragraph. It's that kind of thinking that distinguishes the leaders from the followers. Great tip on alternative financing! As I was reading this, I was thinking I like how this guy thinks outside the box…then I saw that last paragraph. It’s that kind of thinking that distinguishes the leaders from the followers. Great tip on alternative financing!

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