OPM for Down Payment

Where do creative investors come up with the funds for a down payment on a purchase?

Perhaps they have their own cash to put down, and will use cash or a hard money loan for the balance. Most investors look for opportunities to use Other People's Money (OPM), whether it is the bank, a private lender or hard money. Most institutions or hard money lenders will require a buyer to put anywhere from 10-30% down on the purchase of an investment property.

Here are a few more creative ideas for finding OPM. You as an investors could:

• Use plastic and your cash advance limits.
• Tap another person’s equity.
• Tap equity in real estate that you already own.
• Title to your toys as security for a line of credit.
• Assume the sellers short term debts as your down payment.
• Transfer their VISA on to yours.
• Trade your skills and abilities as your down payment.
• Buy wholesale and give to seller as down payment at retail.

Any other creative ideas out there, dear blog readers?

Happy Investing!

Equity Investment in Your Home

Here is a unique and novel approach to home equity investment and appreciation. Rex HomeBuyer is new to the housing market since 2004, and is a private equity fund that uses investments by private real estate investors to help creditworthy borrowers come up with down payments.

They put up to 50% of the down payment on a house in exchange for a share of the equity whenever the house sells. There are no mortgage payments and no interest on this money. It is a form of shared appreciation.

Conversely, if the market goes down, they also share in the loss, thus mitigating some of the risk for the homebuyer.

For more information on this program, see this article from the LA Times:
http://articles.latimes.com/2013/jun/07/business/la-fi-lew-20130602

Happy investing!