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If you live in Australia yourself, particularly Victoria, it is hard to be unaware of the boom in property investment which is currently underway. Even if you live on another continent, you may well be aware of this situation. Regardless of where you are, the time to invest in Australian property is now.

To make the most of these investment opportunities, you’ll need to be able to invest in many different properties. You might already know some ways to secure financing for this, at least on a smaller scale. However, if you can use several different creative financing techniques, you could increase the size of your portfolio; going from just a few properties to dozens - and creative financing is the way to do this.

Creative Financing

In order to get in on this market, you’re going to need to know a few important things. To really make the most of your opportunities on the Australian property market, you’ll have to learn about some of these creative financing techniques. I’ll go into a few of them in this article. You would be best off getting the advice of an independent financial advisor as well to ensure that you are getting some expert advice and personalised service.

In order to be successful in property investment and increase your portfolio significantly, creative financing techniques need to be used. Creative financing is a term used by real-estate investors and it refers to non-traditional real-estate financing techniques. These techniques are not commonly used.

The aim of using these creative financing techniques is to aid you in purchasing properties when either the investor doesn’t have enough capital of their own to invest, or they don’t want to use their own funds. This type of financing is sometimes known as leveraging other peoples money.

Some Creative Financing Techniques:

Simultaneous Closing: In this technique, the seller receives financing without taking out a mortgage. At closing, the title is transferred to the buyer and the mortgage is simultaneously sold to a note investor for cash.

Subject-To: This transaction is a creative finance technique in which a buyer is able to take the title of the property without procuring a note themselves. This involves the seller of the property leaving their existing financing in place then the buyer does not need to pay transaction costs or loan fees of any kind. This entire process is similar to assuming a loan. However, it occurs without the consent of the original lending institution and thereby violates the terms of the loan.

Other techniques include: hard money loans, private mortgages, simultaneous closings, land trust, short sale, lease option, lease to purchase, owner carry back, seller seconds, note buyers, credit partners, partnerships, retirement accounts, 1031 exchanges, no and low loans, loans on other property.

Using an independent financial advisor can help you to get the right specialised investment advice.

They can asses your borrowing capacity.

An advisor has intimate knowledge of lender guidelines.

Can determine which lender will view your unique situation in a favourable light.

Save you time by performing the research for you.

Explores all the options that are available to you and can help present the right ones for you to choose from.

They can show you opportunities and financing techniques which you may not have known about.

They can streamline the loan process for you.

Look after your best interests and help you to avoid lending pitfalls.

Assist you in many ways, even after the loan process is complete.

These advisors offer personalised service.

They can show you techniques which will save you thousands in the long run.

An independent financial advisor can grant you access to many options which lenders would happily keep you in the dark about. The creative financing techniques they can assist you with can quickly expand your property investment portfolio.

So if you really want to capitalise on the property investment boom in Australia and you need to know how you could finance your investments, consulting a financial advisor and searching out creative investment ideas will aid you in increasing your investments . Just imagine, you can go from owning just 2 properties to owning up to 20 or more inside of 2 to 5 years.