Myth #2 Lower Selling Price

Why do people shy away from creative financing?

It’s all about myths and misconceptions.

In this article we’re going to look at the myth that creative financing deals are just “investor talk” for getting a lower price for the property. 

Myth #2: Lower Selling Price: While creative financing can expand the buyer pool, it may also mean accepting a lower selling price compared to a cash offer.

Truth: Since most creative financing deals are initiated by real estate investor, people think that this is just another way to get a lower price for the property.  At Black Belt Investments, and as part of the Creative Financing Real Estate Association, this is not the case.  We actually pay market value (and sometime a bit more) for properties.  How can we do this?  This answer is that it all depends on how the deal is structured. 

There are a lot of way to structure creative financing deals.  Our system is structured to get the most money for the seller, while also creating a situation for the buyer where they are able to get the property they want now, and without the need to wait to be “bank ready”. 

Home purchased through creative financing are generally purchased as “rent-to-own” properties. These properties are priced slightly about the current market value for a home and the buyer knows this. 

Sellers are able to get the most for their home now and buyers are able to get the home they want now.  It’s all structured in a way that satisfies the needs of both he seller and the buyer.