324: Rookie Reply: How to Make an IRRESISTIBLE Offer Through Creative Financing

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 23 September 2023

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

Creative financing can be a powerful tool to help you get YOUR first property in the bag. In this episode, Ashley and Tony explain the biggest differences between hard money, private money, and traditional lending, as well as which options will make your offer irresistible to a seller! Welcome back to another Rookie Reply! If you need capital for a new deal, you might consider partnering with a parent. Of course, like any investing partnership, it’s critical that you structure it properly and include all important terms in your agreement. Our hosts will show you how! They also cover cash-out refinancing in detail, including how it works and how much money you can pull from a property. Finally, they talk about using wasted space in your investment property to make more cash flow! Do you need to pull permits? Will you get caught if you don’t? Stick around ‘till the end to find out! If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover: Using creative financing to make an offer more attractive to a seller The biggest pros and cons of traditional lending, hard money, and private money (and when to use which) Partnering with your parents and key terms to include in your agreement When to order an inspection before submitting an offer on a property Adding a new room in your home (and when you NEED to pull permits) How cash-out refinancing works and how much money you can pull out And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Grab Your Copy of “Real Estate Partnerships” and Use Code “ASHLEY” or “TONY” for a Discount What Is Creative Financing And How to Use It in Real Estate What Investors Should Know About the Home Inspection Process Follow Patrick and Danielle McGrath on Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-324 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real State Rookie, Episode 324.
0:05.0	Typically, when we're using our private money lenders on a flip, we'll say, like, no
0:08.5	financing contingency, and we'll say, like, a 21-day close.
0:11.9	So we don't necessarily say, like, hey, it's an all-cash offer, but those are the things
0:14.9	we tell them, hey, we're going to close quickly, and we don't have a financing contingency.
0:18.7	Those typically kind of make our offers a little bit more competitive.
0:21.4	My name is Ashley Care, and I am here with my co-host, Tony J. Robinson.
0:25.7	And welcome to the Real State Rookie Podcast, where every week, twice a week, we bring you
0:29.3	the inspiration, motivation, and stories you need to hear to kiss out your investing
0:33.0	journey.
0:34.0	Today, we're coming back with another Rookie reply, and we've got some really good kind
0:38.4	of conversations going on today.
0:40.4	We're going to talk a little bit about financing options, hard money versus private money,
0:45.9	and what the differences are, and kind of which one works for each situation.
0:49.5	We're going to talk about real estate inspections and the timing of those.
0:53.2	Should you be doing it before you close on a property during the closing process, before
0:57.4	you even submit an offer, we'll give you an answer to that.
0:59.9	We're also going to talk a little bit about fire burning toilets in a while you should
1:03.9	or should not buy properties with that type of plumbing situation.
1:07.3	Then we talk about partnering with your parents different ways to actually structure
1:11.3	that partnership, and then what happens if you come into a property that has some wasted
1:16.5	space, like two living rooms that can be an additional bedroom, and Tony and I break
	...

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