SO MANY WAYS TO BUY (PART 1) BRUCE KELLOGG
Second, if the “wrap” is written at a higher interest rate than the loan(s) enclosed in it, the seller will receive
excess interest above what he is paying out. Yields can be high with a “wrap” this way.
million.
#6 – “Creative” Financing
This is where real estate gets “creative”. By legal definition, personal property is any property that is not real
property. Examples of personal property are cash, corporate stock, gemstones, art, vehicles, promissory
notes, and so on. How about, instead of cash, use other personal property for the down payment? A 4 carat
diamond was used to purchase the Mt. Diablo Hotel in Contra Costa County. A mid – 1930’s 40 foot wooden
motor boat (gorgeous woods) was used to acquire a triplex in Redwood City. How about a travel trailer for a
down payment? Anything goes, sometimes!
#7 – Funds From a Whole Life Policy
In most cases, it is possible to borrow from a “Whole Life” insurance policy and use the funds to buy real
estate. This can be investigated by reading the terms of the policy, and then discussing this with the company.
Repayment will be required, and reasonable interest will be charged, but it’s a good source of funds.