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.



If you are serious about cashing in on the property investment boom and quickly, then you are likely looking for creative ways to invest in multiple properties. Perhaps you know a few. However, by utilising multiple sources you can go from investing in two properties to having an investment portfolio of 20 or more properties. How?

Creative Financing

To get started in this market, there are three important things you'll need to know. If you're serious about expanding your investment portfolio, you have to educate yourself about these various financing methods which are out there. I'll explain these, complete with examples. You'll also need a financial advisor who can give you some solid advice and personal service.

To do well as a property investor, you'll need to use some creative financing techniques. This means using non-traditional sources of funding for your real estate purchases.

The idea behind using these creative financing techniques is to help you buy property even when you don't have the necessary capital to do so - or simply do not wish to use your own money. This sort of financing is called leveraging and involves using other people's money to buy property.

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 is a creative finance technique where the buyer can obtain the title to the property without having to procure a note. The seller of the property in question keeps the existing financing in place - this way, the buyer does not need to pay any of the loan fees or transaction costs. This is akin to assuming a loan; but beware - this is done without the consent of the financial institution which issued the loan (which violates the terms of the original 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.

An independent financial advisor can assist you with their expert investment advice. These professionals can assist in many ways:

They can assess your borrowing capacity.

An advisor has the insight into the lenders guidelines.

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

They can save you a lot of time by doing the research for you.

They will investigate the available options and help you to find the best one for you.

Provide a range of products and resources you may not be aware of.

Organises the entire loan process for you.

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

Looks after you before and after the loan process.

They can offer you offer personalised service.

Techniques that can save you thousands of dollars 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.

If you want to get in on the boom in property investment here in Australia, you'll need to get up to speed on creative financing techniques, get the advice of a financial advisor and then begin working to really beef up your investments. You could go from just a few properties to more than twenty in the space of a couple of years.