Investment Real Estate financing has many options for business owners looking to purchase other properties for rentals or other investments. Of course there is always the traditional route to take, which would be through banks, home mortgages companies, or credit unions. However this lending option can be difficult to acquire due to the necessary qualifications needed for approval.
Then there are the creative financing options:
Seller Carry Back always known as ‘Seller Second’ is a form of creative financing where the seller of the property agrees to carry the note for the purchase. This form of financing generally occurs when the seller owns the property completely without any existing debt on the real estate. Instead of turning down a buyer that cannot front the money for the purchase, the seller will agree to hold the note and receive monthly payments instead until the property is paid in full.
Subject-To is also a form of creative financing that requires the investor to take over the seller’s monthly mortgage payments.
See more on Prime Commercial Lending’s Commercial Real-Estate Financing programs, here.