Creative Finance Methods That Work In Today’s Market

On this podcast episode I talk about creative finance methods that are working in today’s market and how you can employ these methods to make you a better real estate investor. The biggest issue in today’s market is that there is a gap between seller’s expectations and what they think their house is worth, relative to what a cash investor is willing to pay. The reason for this is because prices went up so much for so long that sellers became accustomed to getting close to market value (or close to the Zillow estimate). When there is a gap between what a seller is willing to accept and what the cash investor is willing to pay, then often turning to creative financing methods will help bridge that gap. One strategy that helps sellers get closer to retail is the Novations Strategy which we spoke about with our guest Eric Brewer on a previous podcast episode. This works well if the seller wants a price that is close to retail, and will not come down to the price you are willing to pay for a cash offer. Another strategy that you want to be able to employ is buying “subject to the seller’s existing mortgage” which essentially means taking over their mortgage payments. To do this right, I suggest you do it with an attorney and have the attorney handle the closing for you. Another strategy that is very useful is seller financing where the seller is financing your mortgage. This works well if the seller is older and is okay with receiving his payments over time. This allows you to give the seller his price as long as you get good terms (a low interest rate and a long term mortgage). The key thing to understand is the position of the homeowner relative to their equity. Do they have positive equity, no equity or negative equity? If the seller’s equity is close to what they owe the bank, then their goal is to simply walk away from the house and pay off the mortgage. In a situation like this it would benefit you to know how much the mortgage payment is, whether that payment includes taxes and insurance and how long is left on that mortgage. This strategy is especially useful if the property could rent for a lot more than the mortgage payment. If the seller is negative equity, then the only thing you can do is a short sale. I suggest you hire a short sale negotiator and pay them a fee instead of trying to learn how to put a short sale package together yourself. If the seller has a lot of equity, or if they own the house free and clear, then you should be looking to see if they would be willing to do seller financing where the seller will finance the mortgage for you. You can do this by offering to pay them a fixed amount for a certain number of months, or by simply creating a fixed mortgage with an amortization schedule. The easiest way to do this is by using an online mortgage calculator to calculate the payment schedule. With so many leads currently being foreclosures and pre-foreclosures, it’s a good idea for you to make sure that you understand how foreclosures work in your State. Many homeowners in foreclosure are emotionally “done” with the property and simply want to “walk away” (if they can). As a real estate investor you need to figure out if there is a way for you to buy their property, pay off the bank and let them walk away from the emotional headache that comes with being in foreclosure. You must know how to use creative finance methods when you are negotiating with sellers. You never know if a seller will be negative equity, breakeven equity, in foreclosure or whether they own a property free and clear. As an investor, you should have a solution for every one of these situations. OUR REAL ESTATE TRAINING PROGRAMS If you are brand new to real estate and want to learn more about our real estate training programs, investing in real estate, buying rental properties, wholesaling real estate, and fixing and flipping houses then please register using the free webinar training links below: FREE WHOLESALING TRAINING FREE FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses, I have a free fixing and flipping houses training webinar at this link: DON’T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL CONNECT WITH ME ONLINE DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING BANK OWNED PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book “Wholesaling Bank Owned Properties” at

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Incredible podcast!

This podcast is a must listen for anyone looking to level up their real estate investing strategies! Lex is a great host and his conversations with guests reveal everything you need to know to succeed.


Amazing Content!

Lex does such a good job covering a variety of topics. The guests offer valuable insight as well. I would recommend this podcast to anyone looking to be inspired and informed!


Absolutely Top Class!!!!

Excellent content from one of the top boots on the ground investor. Personally changed my life and my Real Estate investing career. Many thanks Lex for providing amazing content, mentorship and for sharing your knowledge and real world experience.


Invest like the best!

Whether you're a seasoned real estate investor or just dipping your toes in, Lex is the guy you want in your corner - and your headphones! I cannot tell you how much I've learned from this show. Thanks a million, Lex!

Arlie K

Excellent Content!!!!!

This is a wonderful podcast to listen to with such valuable content. I was very interested to listen to your take on why one should purchase rental property.


Best real estate investor podcast.

Lex gives you real tips with actual names of multiple sites and services to use from the beginner up to advanced. I feel he’s giving away his classes for free on the podcast. Most podcasts stop short of details and give generic advice unless you join there groups.


The Real Deal!

I’ve been looking to get into the world of real estate investing but everyone I ask gives me answers that makes it all sound way too easy. This podcast gives you the real deal. More please!

Anna B David

Great show for beginners or experts!

As an amateur flipper since I was in my teens, I kind of have gotten pretty good at identifying great opportunities and taking advantage of them. But, Lex dives much deeper and gives actionable tips on how to make sure you are looking at everthing before making any decisions. I'm hooked!

Mitche Graf

Be Prepared to Learn!

Two words: Information Dense. Sweet Moses. I’ve listened to other real estate investing podcasts but this by far is the most practical, the most hands-on podcast I have heard to date. You can tell that the host, Lex, is very passionate about real estate investing. That passion with his experience translates into an excellent podcast. He shares theory about a topic and then tells a story about his experiences in the real world. That to me is gold!

Cliff Duvernois