Do you want to create a new life through property income but don’t have any money? Are you trying to dig yourself out of a hole of bad debt? Do you need a mortgage but your credit rating is standing in your way? To solve any of the above dilemmas and get going as a successful property investor, this may be the perfect read for you. You will learn why we love creative loans and how, through using them, you can help others too.

What are Creative Loans?

This is an obvious question and a rational point from which to start. Creative loans are choices that lead to opportunity. They are an essential tool in the kit of the property investor that enables success and scalability. They find solutions where others turn their back and walk away. Allow us to explain.

It would be fair to assume that you, the reader, have some understanding of traditional financing methods for buying property. Mortgage lending is of course the first point of call for most, be that residential, buy to let or commercial lending. You may or may not be familiar with Bridging Loans or Peer-to-Peer lending. All of these are fairly commonplace options for generating funds.

Creative loans operate outside the sphere of these traditional lending methods. They provide solutions to allow you to think outside the box when for one reason or another, a traditional loan is not an option. Whether due to bad credit, low income or a property related issue it will be a red flag to a mortgage lender. Creative loans are essentially answers to questions and come in different colours and shapes.

No money, no problem

People come into property investing with all manner of stories and their own reasons why. The next doorway along the path to success will be the how, and this is where many fall short or give up. As previously mentioned, the hurdles along the path to how, may be in the shape of bad debt, no money or a poor credit score. However, Mark teaches perseverance, patience and creativity to understand that to every problem, there is a solution.

Whatever your personal problem is, it can be solved and the chances are a creative loan will be the answer. A creative loan could allow you to side-step those hurdles and continue to move forwards. The key for you is to change your mindset to focus on the solutions rather than just seeing a series of problems.

As the name suggests, creative loans require creative thinking. To quote Albert Einstein, “We can‘t solve problems by using the same kind of thinking we used when we created them.” Changing your thinking will allow you to not only see potential but also to gain the confidence to take action. Potential will not become reality without action. Ok, that’s great, so what action do you need to take?

Do you believe in Angels?

Mark teaches a number of tools that you can keep in your bag for when the right time arises. At the core of our creative loan strategies is Angel Financing. You may have heard the term before, you may use angels already but the most exciting thought is, an angel may be closer than your think. So, what is an angel?

Angels are individuals who have savings, however they would like them to work a little bit harder than the 1% interest they get from the bank. They are people who will want to invest in your projects and provide financial support in return for higher interest on their savings. Because angel financing is a private loan, there will be no need for credit checks or minimum criteria. It will be a case of being credible through your property investing education, experience and having done your due diligence. Your project will need to be thoroughly calculated and researched. Now here’s the bit we love most.

Considering the average savings account with a bank is earning around 1%, you will be able to offer the angel a return of 8%, for example. It’s a no brainer! You are helping the angel buy earning them money for doing nothing, you have finance to fund your project and you can begin to finance your first deal. These are the win-win situations that are at the heart of what we teach. Now, what is not to love about that?

Angels sit on the tip of the iceberg

Of course angels are just one option amongst many. Imagine buying a property where the seller lends you the money to complete your next sale! Imagine earning property income without even needing to buy a property at all. Or how would you like someone to host a mortgage on your behalf? The possibilities are endless and only limited by your thinking, your knowledge and your desire to succeed.

This is why we love creations loans. They offer potential. Potential for anyone to become a property investor and reach their goals. The stories from our trainers, mentors and coaches are abundant with tales of starting with less than nothing. People who were in dire straits and with grit and determination, became educated and made themselves the successful property investors they are today.

The strategies that we teach and the tools that we give you are not just from text books. These are the same concepts that have been employed by the very people that will be teaching you. They will teach you how to be creative, how to generate opportunity and most importantly, how to not take no for an answer.

One more tool in the box

Property bridging loans are a very useful tool to ‘bridge-the-gap’ between the initial purchase and the arrangement of a mortgage. They allow the investor to buy unmortgageable properties fast, with the view to refinance once the value has been increased. They also provide further purchase options that could be the answer in specific situations.

As with any tool, to use it safely and appropriately you need fully understand what it’s for and when to use it. Luckily your friendly mortgage broker will be there to assist you as each deal will require its own funding strategy. The best approach is to be upfront and crystal clear about what you want to do with the property. That way the broker will be able to suggest the best products for your needs.

The different finance options, when to use them and how to find a good broker are all covered in our Virtual Meetups by our resident bridging loan expert, Dan Fatica updates members on the latest news around Bridging Loans. Investing in quality education will be a huge asset to your journey but at the very least, understanding who to go to for solid advice will hopefully minimise your risks. With so many financing options available to the investor, getting the right product could make the difference between failure and success.