Creative financing in real estate

United States
February 8, 2007 2:13am CST
Does anyone know what is meant by creative financing in real estate endeavors? Is it for good creditworthiness or bad? I have searched and searched and all I can come up with is different companies offering it, but no explanation as to what it is?
2 responses
@irisheyes (4372)
• United States
8 Feb 07
Most people with a good crdit rating don not need creative financing for real estate. Also, most buildings in good mortgageable condition do not need creative financing. Basicall creative financing is a way for a less than credit worthy person to buy a less than mortgageable house. Sometimes, creative financing can get a little too creative and is actually illegal in some states. In Pennsylvania for instance, it's not legal to puff the price of the real estate so that the buyer gets all settlement costs paid as well as a monetary kick back at the settlement table. (I worked in real estate in the 1980's and I saw this done a number of times although it was not legal)
1 person likes this
• United States
8 Feb 07
Thanks for your thorough response. I was talking with a friend who had stumbled over some kind of work-at-home opportunity which she said was pretty much based on creative financing and real estate. I just thought it sounded like an alarm going off!
@elisata (569)
• Netherlands
12 Feb 07
Anything creative which has nothing to do with art or handcrafted work, is not so good... except for creative thinking in discussions -LOL- You have creative bookkeeping as well. May work for a while, till you're caught. Remember Endron! Creative expenses accounts are also very popular, in all ranks of society... Basicallly there is a little fishy thing going on when creative is connected with it....
• United States
13 Feb 07
Thanks for the input. I was just looking into various work-at-home opportunities and a real estate endeavor kept repeating the terms creative financing. I guess I should have smelled that one.