Understanding Creative Financing: Your Path to the Home of Your Dreams and Lifelong Financial Security

Understanding creative financing is an important element in building your wealth over a lifetime.  Understanding and applying the techniques of creative financing to the purchase and sale of your home opens the door to having the home of your dreams now.

We have just built the home of our dreams* -- and own it mortgage free! By applying creative financing principles we have learned over the years** to each of our home purchases and sales we have been able the way we lived in some of the finest homes in America.

For example, pictured below is a 1934 aerial view of Spring Garden in Alexandria, Virginia. George Washington reportedly spent his last 4th of July here. In the 1980's we used creative financing*** to purchase and, later, sell the property. We used the note we took back in that sale to help build our new home.

Spring Garden before our restoration

Once you understand creative financing, your options for finding the home of your dreams widen considerably. Here is a story I told in my real estate investment seminar.

Each day the young couple, Andy and Edith, drove to work they passed an elegant older home on the corner before exiting to a main road. The couple each day would say how much the loved the house -- and how they hoped to be able to afford one like it some day.

One day as they passed the house Andy stopped the car, took Edith's hand and knocked on the door. An elderly man answered and Andy said, "Mr. Jones, I'm Andy and this is my wife Edith. We just wanted to tell you how much we like your home that some day, when we can afford it, we would like to buy it.

It turned out that Mr. Jones was considering moving to an apartment, but was troubled about who would be the new caretaker for the house that had been his and his wife's lifetime home. Mr. Jones asked Andy, "Would you be willing to move into this house and buy by starting with payments you now make as rent, and increasing those payments as your income increases?" Andy said yes, and a month later he and Edith moved into their dream house.

Russ Dalbey, who had the same investment mentor as did we, in his "Winning in the Cash Flow Business" course tells a similar story. The key to success in such transactions is understanding the time value of money and that you can (and how to) convert cash flows into cash and the reverse.

These principles can be applied in business, in real estate investing and certainly in purchasing the home of your dreams. Whether you ever wish to use creative financing for investing in real estate or the cash flow business, you should know how to manage cash flow paper to your advantage.

I have gone through Russ Dalbey's course and can vouch that what he presents is everything you need to know to use creative financing and cash flow paper to your benefit. He offers a 30 day trial -- and in that time you can learn enough to point yourself in the right direction for applying creative financing principles to getting the house of your dreams. ****

Don't wait for me to complete this article.  I've been through all these materials and can vouch, from my own experience, that the techniques work.

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*Click here for a guided tour.

**My wife and I started our path to success by flying to San Francisco for a three day course in real estate investing conducting by one of the industry's leading practitioners.

***The owner restored a house the adjacent (right) lot and we agreed to rent it for the five year historic renovation depreciation period, with half of our rent going towards the purchase of Spring Garden (with the owner financing the remaining purchase price amount). At the end of the five year period we switched houses and acquired an incredible home which had doubled in value. We used the increased equity to secure funds for renovation and an improved lifestyle.

****You can start learning now by clicking here.

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Click here if you would like to find out more about how we did these things and the sure success principles we used in our real estate investments (and I taught in my very popular real estate investment seminar).

Go to Best Business Online overview page from creative financing.