August 07, 2020 – Can’t Get A Bank Loan? Try Creative Financing


“Pain pushes until the Vision pulls.” -Michael Beckwith –

Hi Readers!

Hope everyone is staying COVID-free but don’t forget to keep your eyes on the prize!   It’s easy to get caught up in all the negativity that’s going on in this country right now from the pandemic to George Floyd to massive unemployment, it’s enough to keep everyone constantly angry and distracted.  But it’s ok.  Let “them” be distracted.  You don’t have to be.  This is the exact time for YOU to focus in on what YOU really want in life, and while everyone else is focused on the negativity, use it to fuel your efforts.  Put together your game plan, and start putting things in place, so when all this is over, you can come out of it soaring like an eagle!

So, to that end, one of the biggest questions I get, and I see daily posted in the many groups I’m in, is about financing.  Many say that’s the one thing that keeps them from getting going in real estate.  Well, I’ve mentioned several times before about getting started through Wholesaling which doesn’t require a lot of cash out of pocket, but for those who don’t want to go that route, in this week’s feature story, I’m addressing some other “creative financing” alternatives that don’t require having a 700+ credit score or a lot of money in the bank to make them work.

In our Manifestation Corner this week, we’re talking about Law of Attraction (yes, again, it’s one of my favorite topics so you might as well get use to it 😊), but this time we’re talking about how it specifically relates to real estate.  Also, make sure to check out the “Suggested Materials” to give you more insight on today’s topic.  

Alright, so now that we’ve gotten my spiel out of the way, let’s delve in and…


Lena W. Claybon

Feature Story


We all know just going to the bank to get a loan doesn’t work for everyone.  As a matter of fact, I would venture to say, it doesn’t work for most.  I know investors who have great credit scores and money in the bank and still have problems getting “traditional” loans.  That’s why alternative or “creative” financing was invented.  

Are all creative financing techniques created equal?  The answer is no, but the point is to know what is possible so you can find your own creative ways to make one (or more) work for you. Here are a few methods to get you thinking:

1. No-doc and low-doc loans.  No (or low) documentation of your income or credit required.  You can find lenders that do these online now. The catch is that you will only be able to borrow up to 70 of the purchase price or property value in most cases.  If you’re short on cash, say for instance, you have only 10% in cash, you might be able to make arrangements with the seller for the other.

2. Seller-carried second mortgages.  If a lender will only loan you 70 of what you need, they may allow the seller to take back a second mortgage from you for 10, so you will only have to come up with 5 for a down payment.

3. Seller Financing.  This just means the seller carries the full note and lets you make payments, then, delivers the title upon payment in full.  I sold a rental this way for $1,000 down, because the Buyer didn’t qualify for a traditional mortgage and I didn’t mind making the 9% interest I was getting.  Also, the Buyer didn’t have to come up with 20% down and pay 12% interest to a hard lender.

4. Credit cards. If a seller will take $5,000 down on a fixer-upper that you expect to make $20,000 on, why not use credit cards? This is a true nothing-down deal for you, and if you turn the project in six months, you will have only paid $450 in interest on an 18% credit card.

5. Retirement accounts (Self-directed IRA’s).  The laws get pretty complex in this area, but you can check with a tax attorney to see how you might borrow from your own retirement account to finance real estate investments or talk Private Investors into using theirs.

6. Private Lenders.  There are private lenders out there who are only interested in passive returns who will loan their money on real estate deals that promise them a much higher return on their money (usually 8 or higher), rather than letting it sit in the bank getting 1% or 2% annually.  These investors can be found in places like local REIA (Real Estate Investors Association) meetings, local IRA groups, online real estate platforms and, sometimes, even family members or friends.

7. Get a loan on another property.  You can take out a home equity loan on your primary home (and, conveniently, forget to use it for that spare room you were going to build) but, instead, use it for the down payment on an investment property.  If it’s a rental property, the rent you get should offset whatever payments you might have or if it’s a fix and flip, once it’s completed and sold, you can pay off the loan, then take the profits that’s left and invest in another property.

8. Syndication. For bigger projects like buying an apartment complex, you could arrange for five or more investors to each put money into a partnership or syndication deal, with your participation being as the “Sponsor” or Managing Partner in exchange for your share of the equity.  The Sponsor oversees the project and is the point person for the General Partnership.  As a sponsor, you can be paid a fee for putting the deal together, then a monthly fee for overseeing the project, and also a “dissolution” fee when the project is sold.


Manifestation Corner

5 Ways to Use the Law of Attraction in Real Estate to Manifest Faster Results

The whole idea of the law of attraction is to be a co-creator with God in manifesting the things that are your deepest desires. When you use the law of attraction in the right way, whether in real estate or anything else in life, you can experience manifesting your desires at a much faster rate than you ever would have had you not made the effort to use it correctly. You can use the law of attraction to manifest faster results in real estate by taking the following steps:

1. Be Grateful Now

Gratitude can dramatically change your life, but best of all, it causes the law of attraction to give you more of what you are feeling grateful and happy for. When you are feeling frustrated and down about not getting a deal or the amount of time it’s taking to find one, the law of attraction gives you more reasons to feel down. You manifest more situations that make you feel unhappy. So as the first rule to manifesting faster results, begin to see all the things in your present life that you are grateful for no matter how simple it is and “feel” the gratitude!

2. Speak of It

It may seem hypocritical at first when you learn of the law of attraction, to speak of your desires as if they are already here, but in reality, all things are already created. I read a book once called, “Thoughts are Things”. It said the moment a thought is conceived, you have brought it into your reality. The more you speak of that thought the stronger it becomes and the faster it moves into your state of being. Speak of already having that house under contract or how much money you made when you closed on it and get into that “feeling” place. It’s the “feeling” that creates. Speak with joy about what will come into your life because your words and thoughts about it feeds that creation and brings it to you faster!

3. Let Go!!!

Let go of what you want. Yes, let it go. “Know” that you desire to experience a particular thing but don’t hold on to it with fear or doubt. The more you cling on to the needing or wanting feeling the more disastrous your manifesting will be. You will only succeed in feeling more needy. Allow yourself to feel full and confident. Those who understand how the universe and the laws of attraction work, easily understand the power of their intention and don’t feel stress or needy. They create and know that the law of attraction is working for them and what they create will soon manifest. They create then let go and move into the state of worthiness.

4. Become Worthy Now

Become worthy by recognizing that you can manifest anything that you want because you are Gods and Goddesses and what you desire is only a tiny speck in the universe. When you use the law of attraction to manifest a better life, you are in the flow and in a better state of adding value to the world. The faster you can feel worthy of what you desire to manifest the faster it will come. One of the biggest blocks in manifesting is the feeling of unworthiness that most people feel. God wants you to have, the universe is great enough and there is more than enough for you and everyone else. You are worthy!

5. Give What You Desire Most

Give to others and you will be stunned and amazed by how fast the law of attraction will manifest abundance in your life. There is a natural flow in the universe and in order to manifest more you must also be in the flow of giving. There are many flawed concepts around giving more than you have. This is very faulty. Give only what you can. Never ever deplete yourself. Give what makes you feel happy to give. Give with love on a regular basis and the law of attraction will bless you by bringing to you much more than you give. As you give, you will get and you will manifest much more than you could ever have imagined and much faster too.


Suggested Materials

Search for Hard money lenders here! Give ’em a call.

Go to this website to find local IRA groups. These people have money and WANT to invest it in real estate.

This Post Has One Comment

  1. Jeannie Armstrong

    Love Laws of Attraction. Thanks for sharing.

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