CHAPTER 9

Creative Financing for Real Estate Investments

There are other sources of financing, ones that don’t come from Fannie Mae, Freddie Mac, or alt lenders. In fact, “creative” can simply mean applying existing loan requirements in another, albeit legal, way.

Let’s take a moment here first and make it clear that creative doesn’t mean fraud. Suppose you have a loan officer who says something like, “You know, we might have to get a little creative here to get this thing done.”

Run, don’t walk.

Falsifying a mortgage application to qualify for a home loan is a felony. Money crosses state lines, making it wire fraud. You sign a loan application that asks you to say, in various formats, that what you’re telling is the truth, and so on.

The problem ...

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