I have been attending a series of classes on creative financing, designed to brainstorm, educate and facilitate putting deals together when bank financing isn't an option. It has been extremely helpful and I look forward to sharing some details with you here when the series is complete.
In the mean time, I came across a short but sweet little blurb on BusinessWeek.com with a few tips. We all know how hard it has been to find funding for small ventures in our current economic mess. Creativity is OFTEN the key. But I have noticed that the old adage still holds true, "Where there's a will, there's a way."
Short, but profound, here are some VERY GOOD points to remember as you look for funding. David Gass, founder of Business Credit Services of Las Vegas, offers these suggestions to real estate entrepreneurs in search of investors or loans.
- Put together financial documentation for your plan. Detail the time and money and "sweat equity" that you've already put in, the income potential, and the amount that you're prepared to invest going forward,. Calculate a profit-and-loss statement that factors in costs for maintenance, repairs, property taxes, and advertising.
- Talk to local bankers first. They are the ones most likely to understand your business.
- Private investors and angel investor networks are another alternative. If you go this route, work with an attorney. "You need a solid structure in place with the right operating agreement to protect all parties," Gass says.
Feel free to give me a call if you have a difficult property to sell and could use some creative thinking! I hve some great resources that just may be able to to help get your deal put together.
Janna Rankin Scharf, AB, GRI, CSP, CNS, CLHMS, provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit www.JannaScharf.comto search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.
Janna Rankin Scharf, 208.651.9700 NorthIdahoJanna@gmail.com
Janna Rankin Scharf provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit www.JannaScharf.com to search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.
No matter how grand or modest your real estate dreams may be, you can turn to me in confidence. Give me a call today and let me know what I can do to be of service to you!
Janna Rankin Scharf AB, GRI, CSP, CNS, CLHMS 208.651.9700
Selling real estate seems to be particularly difficult these days - for agents and homeowners alike. Trying to sell a home in a market like this definitely requires some creative thinking - not only do you have to hope your home stands out from the rest, but you may need to come up with creative financing solutions as well. Glad to know there are some agents on the ball!
Having worked in real estate investing from 1973-2001 -- and with some friends right now begging me to come back -- I can offer you another way:
Find some friends that you trust and create a small partnership. Everyone contributes money and/or sweat equity and shares in the profits. This also requires an iron-clad partnership agreement created under the tutelage of an attorney.