Regardless of the doom and gloom spouted by the media, it really is possible to profit from an investment property portfolio in any stage of the property market cycle. Most investors simply think about making money with real estate during boom times, but smart investors know that it just takes a little creative thinking to profit even more during a down turn.



The property investment pros already know that creative financing is the way to build equity, enlarge their portfolio and make the largest profit possible.

Creative financing is simply the practice of using some lesser known applications for existing financial products to finance multiple properties using little or none of the investor's own money. Learning a bit about the financial products offered by various lenders can help a wise investor plan for a large portfolio of investment properties.

Here are some creative financing examples.

OPM (Other People's Money) - It's entirely possible to structure a loan for a property purchase using other people's money. You might leverage your own home using a small line of credit to fund the deposit and then use a regular mortgage to complete the purchase. This means the bank has funded the entire purchase.

Equity in Other Property - You can use the equity you have built up in your other properties to finance the purchase of a new property.

Partnerships - If you find a great deal for a large project, perhaps arrange for four or five investors to join together and each put money into a partnership.

Joint Ventures - If you don't have the equity you need, but would like to start building a multiple property investment portfolio, you can start a joint venture with a partner. You take care of the work; your partner provides the equity.

Money Partners - As with joint ventures, there are many people wanting to invest that don't have the time or the knowledge - but they have the money. By creating an agreement with a money partner to split the profits, you can supply the knowledge and the legwork and your money partner supplies the funds to complete the deal.

Private Lenders - Not everyone knows people who are willing to put money into someone else's investment deals. This is where private funds from private lenders can be very handy.

Of course, the interest rate for these loans is higher, but if you're working on a renovation project where you know you'll make a $40,000 profit when you sell in just a couple months time, who cares if it cost you $10,000 or $12,000 in interest?

Low-Doc and No-Doc Loans - There are some loan products which require little in the way of financial documentation to secure. However, these loans will usually need a larger deposit than for other products.

Borrow Against Super - You may be able in some circumstances to borrow against your superannuation. This can get very complicated, if you are eligible for this kind of creative financing, it is an option worth exploring.

The above are only a handful of the creative financing options you can use. If you get a little advice and do some research, you may find some creative financing ideas of you own. Don't let difficult financing stop you from building your portfolio - talk to your mortgage expert and start thinking outside the box.